I agree 392 for resurfacing (Even if it includes hot tanking) is very high.
I just had my block and head cleaned, checked, and surfaced. The rotating assembly balanced, the crank and oil drive polished, the bores honed and rods put on the pistons (for good measure) for $510....
Here is what I would do. Your head is likely fine in terms of flatness, you dont NEED to surface it since it ran previously and didnt leak coolant into the oil/vice versa I assume.
Grab one of these, pull the head off, take it to a (different) machine shop and have them clean and check the head and valves. Should be under $75.
When you get it back and they say which valves are bad, replace them with this
http://www.ebay.com/itm/131538012264...%3AMEBIDX%3AIT
And here are your parts.
http://www.ebay.com/itm/97-01-Audi-A...lUtwSq&vxp=mtr
You will likely need to use different bolts as the AEB and AWM take different width bolts, but this is most of the stuff you need to get it back on the road. And unless you have a bigger turbo that head gasket/bolts will probably be just fine.
Put new belts on it with your existing roller and tensioner and install your damn covers.
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