One problem related to headlight switch has been reported for the 1998 Audi Quattro. The most recently reported issues are listed below.
I just recently received a recall notice from Audi of America. In the body of this letter Audi states "what is the problem" what Audi describes as the "problem" is exact while driving east on 28th street in new york city traffic, I noticed smoke coming from the front of the car, by the time I pulled over the smoke was billowing from the wheel wells. I was late for a meeting already so I jumped in a waiting cab and as I did I noticed flames shooting through the wheel wells too. I phoned the nyfd.