Early 2000s Audi A4. Challenge car?

I have a lead on one. It could be free as it is mechanically totaled.  Ac does not work. Needs a complete brake job. Needs complete tune up. May need a turbo. Needs tires. Basically a family's  third car that a nanny drove in to the ground. The interior is complete but nasty. Thinks a couple  years of halling young kids around nasty. The back seat is a biological wonder.   
 

The good is it is a 1.8turbo motor.  I have always thought if I could get one that runs and drives and then add a bunch of lightness possibly then cut the springs and add as much handeling and power that the budget would allow you could have a challenge contender.  The only thing that would make it better would be a manual transmission but free or almost free we can live with an auto.   
 

I don't know Audi 1.8l motors but a couple mechanics I know that work on euro German cars say it is the easy way to a bunch of power (up to a point obviously). 
 

So any one here have any knowledge they can impart on me about these things?   I am sure there must be some sort of pit fall to my simple plan. 

I'm wondering why this isn't a build thread yet.

I don't have much to offer, but I do remember back in the day a lot of people turned the boost way up on those motors. Might be a fun toy. 

Cleaning is, basically, free...except your time. It's a racecar, no backseat needed, anyway.

Do it.

If you weren't halfway across the country I'd be pestering you for what I presume is the manual transmission...

It is an auto

dean1484 said:

It is an auto

Halling is spelled "hauling" and if it's an auto it is probably a manually shiftable ZF 5HP-19 like the "Tiptronic" in Porsche 986 Boxsters. For the 1.8T tuning get to know these guys: http://nefmoto.com/forum/

Isn't a bad auto the reason most of those got junked?

I would not trust turning up the wick on the B5 auto.

For challenge purposes it could be a solid top third contender if you could sort out all the mechanical bits.    Factory is something like 150hp so it's not a powerhouse.   Getting a "tune" would certainly help.    Heavy chassis will never be a Miata but should be competent if somewhat camber challenged.

Weak links are rods (good to about 325-350 lb/ft if memory serves), valves and timing belt. 

VWVortex will have more info than you can bear.