1996 Audi A4 Brake problem

Check the rear calipers, if they look like this(aluminum), it could be the rear caliper is leaking or out of proper adjustment.
Installation (Aluminum Rear Calipers) 1. Use Special Tool (VW 3272) along with Collar (3272/1) or equivalent, to seat caliper piston fully into cylinder bore. See Fig. 34 . Seat piston by turning special tool until piston is bottomed out in bore. 2. Remove protective foil from brake pad backing plate.Install brake pads in brake carrier. 3. Install brake caliper housing with new self-locking bolts and tighten to specification. See TORQUE SPECIFICATIONS . 4. With engine off, depress brake pedal several times to allow pads to move into operating position. Top off master cylinder reservoir as necessary. Adjust parking brake as necessary. See PARKING BRAKE under ADJUSTMENTS. NOTE: Before pressing the piston back, draw off brake fluid from the reservoir with a bleeder bottle. Otherwise if reservoir has been topped off, fluid will overflow and cause damage to finish. CAUTION: The repair kit contains four self-locking hex bolts which must always be installed. Page 1 of 1 DISC -1996 Audi A4 Quattro 3/14/2009

Pull up on parking brake, does pedal hieght improve?
Adjust parking brake like this:
PARKING BRAKE 1. Press brake pedal firmly. Remove rear passenger compartment ashtray. Use flat-bladed tool to prevent compensator from turning. See Fig. 6 . Remove plastic shielding and discard (if present). Fig. 6: Locking Parking Brake Compensator In Place Courtesy of AUDI OF AMERICA, INC. 2. Raise and support vehicle.On Front Wheel Drive (FWD) vehicles, locate parking brake adjustment nuts in the tunnel on the underside of the vehicle. On All Wheel Drive (AWD) vehicles, adjusting nuts are in front of rear lower control arms. See Fig. 6 . 3. On all models, remove locking clip "D". See Fig. 7 .Counter-holding hex "E", turn adjusting nut "C" until it stops. Slide cable adjuster "B" together. Turn adjusting nut until slot for locking clip is visible. Install locking clip "D". Fig. 7: Adjusting Parking Brake Courtesy of AUDI OF AMERICA, INC. 4. Pull both cable sleeve adjusters apart simultaneously until cables are tensioned. Lever at rear brake caliper must not lift from stop. Remove screwdriver from compensator. Apply and release parking brake 3 times. Check parking brake adjustment. If necessary, fine tune adjustment by turning cable adjuster "B". 5. The colored "O" ring must not be visible. See Fig. 8 . This ensures that the parking brake cable adjustment mechanism is sufficiently protected against dirt and water spray. Check parking brake tension and adjust fine adjustment in or out if necessary. Fig. 8: Parking Brake Fine Adjustment & "O" Ring Identification Courtesy of AUDI OF AMERICA, INC. 6. Check distance "A" at rear caliper. See Fig. 9 . Lever should not contact brake caliper. Gap should be visible but no wider than 0.059" (1.5 mm). Fig. 9: Checking Parking Brake At Rear Caliper Courtesy of AUDI OF AMERICA, INC. NOTE: Adjust parking brake only if parking brake cable, rear brake pads or rear caliper have been replaced. Page 1 of 1 DISC -1996 Audi A4 Quattro 3/14/2009