To test the crank-home signal, you can pull the hall-sensor connector and make a short between 5v and signal, that way you will pickup a camsync signal everytime the crankhome pin goes by the secondary vr-sensor.
If you get signal when testing this, your crankhome pin isnt alligned with the hallsensor-window.
Operation with failed cam-HALL sensor ("limp-home")
The factory audi cam-HALL sensor is known to break relatively often, especially old (original) sensor in an overheated engine bay, especially the sensor in the distributer (the sensor at the front, as in some engines, seem to fail less often). We've seen small unipolar HALL-sensor [SS443A] hacked into the distributer but we don't know how difficult it is to apply it reliably.
The motronic cannot start with a failed HALL sensor. VEMS can start with failed HALL sensor, appr. 50% of the time (need to crank a few more time if backfires), if:
(with cam-HALL inverter, which is standard now, with trigger_tooth=00) the HALL pin is pulled to ground. In other words, to limp-home to the car-electrician, find the pin in the HALL connector that is the +5V from ECU, and connect the other 2 pins
without cam-HALL inverter (which used to be standard before 2008-06, with trigger_tooth=08) the HALL pin is pulled to +5V (simply disconnect the sensor connector; note that with some luck the HALL sensor will fail with output stuck to +5V or open circuit).