What's wrong with my Audi? Ignition Switch Problem? Audi expert needed!?

If your starter were always on, what would that have to do with your clutch? If you need any more convincing, you can try to run the starter with the vehicle on one time and listen to the constant, ear splitting grind your vehicle makes (though I don't recommend it). They starter is set to spin but so fast, if it is always on (which I've never actually heard of or seen happen) it would make a continuous grinding noise and then the teeth would break and then your vehicle would not start. Your problem sounds like it's in your clutch kit itself (you have a hydraulic clutch, so none of the linkage is going to make that kind of a noise). The grinding sounds like a bad release bearing, but both the release and pilot bearings will come with your clutch kit. The flywheel does not engage the way you are thinking. The flywheel is constantly connected to the motor (which is why turning the starter turns the motor). When your foot is OFF the clutch, it is "engaged" - the springs push the pressure plate against the clutch against against the flywheel, connecting the motor to the transmission. When you apply the pedal, the pressure plate is pushed away from the clutch, causing the engine and transmission to no longer be connected, allowing you to shift gears without grinding them. Check out this article on how stuff works.