ive got a 96 A4 with the same engine...heres the thing with it...96 and 97 are 12 valve models and not too many companies make parts for them...so the pes supercharger for the 2.8 wouldnt work becasue its designed for the 30 valve model...so the choices are very limited...basically a chip does very little for the price you pay...ive seen some chips promising a 18 hp increase at the crank for $500 plus...not very good return on investment...also keep in mind generally chips work better for cars that are either turbo or supercharged...the only thing that id like to get is the supercharger from motodyne (
http://www.motodyne.com)...it would bring the car up to about 250-260 hp and around 290 ft-lb of torque...however thats going to run 5 grand...but truthfully thats about the only thing out there that would be worth it...basically what it comes down to is this...go big or go home...either get small stuff that wont give you much power for a lot of money...or get the supercharger that will give lots of power for a lot of money...but the hp per $ ratio is much better...so theres the break down...ive looked into it a lot so thats it in summary form