So I've seen a lot of DIYs for repairing the B6 and earlier Audi center consoles, but I haven't seen any for the B7 and since the B7 center console is a little different I figured I'd make a DIY for it. Most of the time it's just the latch that breaks and this is a really inexpensive repair. A new latch can be purchased on eBay for $3.98, here's the link:
http://www.ebay.com/itm/311494503601

It says it's for a B6 but it works perfectly fine on a B7. The latch doesn't come with a spring so in order to do this repair you need to still have the spring when the latch broke; it looks like this:

So now we can start fixing the latch...

Step 1: Remove the lid of the center console. Push the plastic connectors in and slide the lid out, you'll have to apply some good pressure to it.


Step 2: Now that the lid is out of the car, you'll have to separate the plastic bottom from the leather top. This is where it's different from the B6. You start on the back of the lid and pull up as hard as you can. It pops out straight up, but you need to give it A LOT of force. It's connected at 8 spots. You can use a screwdriver or plastic tool to pry the back up and work your way to the front. It will sound like you're breaking plastic, but those are the seals breaking (they're supposed to).

What the underside looks like so you know where it's connected at:


As seen in these pictures it looks like the two pieces were glued together in the spots where they connected, that's why it requires so much force to separate them. Don't worry about re-gluing them, they'll click back together and hold just fine when you put it back in the car.

Step 3: Remove the old broken pieces of plastic if they're still in there.


Step 4: Insert your new latch into the base of the lid. Pay attention to the orientation of the latch; the flat part of the latch is on the same side as the bottom part of the base of the lid.


Step 5: Install your spring that you kept. Start on the inside of the latch and place the spring on each end of the latch.

Then using a hook or pick tool, you'll need to stretch the spring over the hook on the base of the lid, this part can be a little tricky.


There should be some tension when you pull on the latch and that means you have done it right!

Step 6: Snap the two pieces of the lid back together, it won't need any glue to be resealed, they'll snap in nice and snug. Your lid with it's new latch will look like this:


Step 7: Put the lid back on the center console, you'll need to work it around to get it to fit back in. Just take your time and be careful. I put one plastic connector in it's place and then squeezed the other one into where it should go. Make sure your lid moves up and down with no resistance and that your latch is working like it should and keeps the lid locked down. Your center console is now working like it did when it was brand new and you only spent $3.98!



Hope this helps someone, let me know if you have any questions!