Straight from the VAGCom archive.
This procedure applies only to older Xenon systems that use KW-1281. Procedures for specific vehicles, including newer cars that use KWP-2000 or CAN systems can be found in the Ross-Tech wiki.
This procedure details how to perform a Xenon Headlamp Adjustment on many VW/Audi vehicles equipped with Xenons (HID's). This procedure cycles the motorized headlamp adjusters to their center position so that the beams can be adjusted. This does NOT align the headlamps by itself. You still need to manually adjust the headlamps via the adjusting screws as referenced against a suitable aiming target.
If this procedure is only partially performed, there may be a DTC stored in the Xenon Range memory indicating "Headlights not adjusted". To clear this, you need to complete the entire procedure.
There are certain test conditions that must be met before doing this procedure:
Vehicle must be parked on level ground and "settled" on its suspension
Parking brake should be OFF
Ignition should be in the "On" position
Headlamps should be "Off"
Procedure for Aligning Xenon Headlamps:
[55 - Xenon Range] (For some newer vehicles, use [29 - Left Light] instead )
[Basic Settings - 04]
Wait at least 20 seconds for the headlamp motors to move. The headlamps are now in their adjustment position. Turn on headlights. Adjust them via their manual adjusting screws as referenced against a suitable aiming target.
Scroll up to Group 002. The Xenon Range controller has now learned this position as its Home position.
Click the [Done, Go Back] button and you're all set.