Hey mate, first of all try a second opinion. You might be pleasantly surprised of the outcome. Second not sure about the rack but I just replaced my rack rubber mounts this morning. I got polyurethane ones from super pro. I have a RS4S 98' so should be exactly the same. Part number is SPF2681K $40. Got them through Fulcrum Suspension, I found they were the cheapest which I found out is because they own Super Pro! Took me about 2 hours to do it. Not to hard to do, just a little bit fiddly.
Regarding the suspension i'm going through the exact same thing at the moment too. Im going with bilsteins but they should be able to get you OEM for cheaper if you cant spend the cash.