In dash AC/Heater control issues

2000 Audi A6 Quattro 2.7t 4 door sedan. The electronic dash controller "appears" to work, all the button lights come on and off when pressed and the blower comes on and will run faster or slower on command. The A/C compressor engages audibly and I had the Freon level checked with good results. My issue is that when the system is turned on air comes out of ALL vents (defrost, dash and heater) and on hot days blows kind of cool until car warms up then blows hot. Changing the settings on the controller doesn't seem to help anything. The air vent louvers below the new cabin air filter are almost closed and don't seem to move no matter what the controller is set on. As advised I tried disconnecting the battery for a minute or so with no positive result. Any other clues out there?