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A4 Dealers and Prices in SF Bay Area

Dear Ouattro Listers -

My girlfriend is looking to buy an A4 in the near future.  In this
regard, we'd like the value of your experiences.  Any input you can
provide would be greatly appreciated!  Please respond directly to us as
well as the list.  Thanks in advance!

First of all the car we are looking for is as follows:

1998 or 99 A4 2.8 Quattro, Silver with Black or Grey interior
Auto/Tiptronic transmission
Audio package (OK, but not required)
All weather package (OK, but not required)
Convenience package
Sport package
Dealer invoice with Destination charge $32,242
MSRP with Destination charge $36,355

1.  Based on recently shopping trips we believe we can order the car for
about $2k off list, which just about splits the MSRP and Invoice prices
and is about 7% over invoice.  Is this a fair deal?  Or should be
negotiating harder?

2.  We live in the SF Bay area.  Any comments, good or bad, on dealers
in the area?  Diablo Audi and Negherbon Audi are the closest, but SF
(Royal Motors) and the south bay (Rector) are close too.

3.  Any feedback, good or bad, on the options we've listed above?  Is
the Bose upgrade worth the money or should we just buy the Cd changer
for about $500?

Best regards,
Ken Owyang