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What broke?

In message <568084b7.349c2212@aol.com> MHLIGGINS writes:

>      Just found out the timing belt is fine.  The cam turns and operates the
> valves, the crank works (pistons move up & down), the distributor turns.  I
> loosened the timing belt and put everything in time, even though it did not
> seem to be out.  Still no compression on any of the cylinders.

Drain the oil, remove the oil filter, ground the HT coil output, spin the 
engine (with _NO_ oil and the plugs removed) twice for five seconds a time 
about thirty seconds apart and then repeat the compression test in one 
cylinder, again with no oil in the engine.

It sounds very much like oil overpressure.  Loss of compression in a hydraulic 
lifter engine is documented in the microfiche:

  Hinweis:  Bei stark ueberhoehten Oeldruck (Ueberdruckventil
            haengt oder ist falsch eingebaut) werden die
            Hydrostoessel ueberdrueckt.  Der Motor stirbt
            kurz nach dem Start ab und wird bei erneutem
            Startversuch wegen fehlender Kompression
            auffaellig schnell durchgedreht.

 Phil Payne
 Committee Member, UK Audi [ur-]quattro Owners Club