Difference between 2005 vs 2005.5 Avant???
#4
Both have the exact same V8. The B7 has 40/60 F/R quattro split on the manual transmission.
better nav by default, though that can be swapped into the B6. Different steering wheel, and a few other tweaks like rain sensing wipers, self-wiping brakes.
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#8
Same engine in both.
$38k does seem a little high. Autotrader average was in the $35.5k range last time I checked. Then again, that is very low mileage. I guess it depends on what that is worth to you.