Rob ,
Did you get around this ? Is it coz we are using the new or newish spec of ross tech cable ?
I have the same issue , even if i uncheck the itelli boot mode
To tell you the truth I ditched my ideas with monoscan and playing with ME3.8.3-5.9.2 for ME7. I bought a 2001 A4 for dirt cheap. I could never get it to work, not saying that it won't. The easiest way I found was to get a programmer to read the chip, and buy MPPS clone from eBay capable of writing to the chip via OBDII. I never got around to doing either. There just wasn't enough info at the time to tune earlier vag cars (for me). I did however become quite good at soldering/desoldering;) hope that helps some.