Thank you for choosing "Just Answer" for your query. Yes, I can help you.
Sorry to say, but this is a costly repair. A seal inside of the torque converter has failed. It is very common on the 2.7Ts as well as the 3.0L vehicles. The transmission must be removed in order to replace the torque converter. There is NO other way to correct this code.
Your MIL (malfunction indicator light) is on because the seal affects the torque converter lock up function which when nonfunctional can reduce your gas mileage. The illuminated MIL and corresponding trouble code stored will "fail" this vehicle for a smog or state inspection where they are required.
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Jake "THE AUDI DOCTOR"
Believe me, I wish I could say that was even possible. But, unfortunatly in this case it has no possible chance of correcting the situation. Audi has come out with a service bulletin addressing the issue. My 2001 Allroad developed the dreded #17125 code about 5K miles ago and I just have not had the time or money to repair it. It's all over the net. Just Google "audi 17125" I,m sure you will come up with plenty of hits.
Sad but true.