Second update: I finally took it to the dealer. They confirmed that my sensors were fine and the problem was my timing chain, it's stretched and the tensioner is at the maximum position. So, obviously I needed to replace the timing chain. The dealer quoted ~$1,800 and my mechanic (a local, family owned, imports shop) quoted me $900. I know this is a complex job and I've read some horror stories but I decided to go with my local mechanic (he hasn't failed me yet.) My car has been in their shop for over a week (they needed to order some special tools which delayed the process.) I will post a final update once I have the car back.
Update: After I replaced the Crankshaft sensor the symptoms didn't go away and the check engine light persists. I then replaced the Camshaft sensor (highlighted in the first picture,) changed the oil, filter and air filter. No change… I'm going to double check the connections and wire harness but I'm beginning to think that my timing chain might be the problem (hope not.) If anyone has any insights I would love to hear them. I have read the code details: http://www.obd-codes.com/p0016
Symptoms: Check engine light (error code P0016.) The car takes noticeably longer than usual to start. Usually it fires right up but now it cranks for a good few seconds. It's to the point that I wonder if it'll start the next time I try. While driving I don't notice anything and it hasn't stalled. *I haven't pushed the car past 4000rpm since the light came on and I try to keep it below 3, so that may be why I haven't noticed a significant change.
This sensor is an easy fix once you know where it's located (finding it is the hard part.)
My model year is 2009 but I find it better to go by B8 because 2009 seemed to apply to the last of the B7s also.
What you need:
1. T30 Torx socket with an extension (the sensor is in kind of an awkward area.) There's one screw holding it in place and it's on the top side.
2. New Crankshaft Position Sensor. I ordered the Beck/Arnley from Advanced Auto Parts, Part#180-0558 (~$60.)
- So far I've had a good experience with Beck/Arnley, seems like it's OEM or equivalent.
3. Small flat head screwdriver, this will help you work the sensor out of it's home (once again, the awkward position makes it hard to get a good grip.)
Instructions:
Follow the photos, you just need to locate the sensor, unscrew the Torx screw, get the sensor out and unhook the connection. Installation is reverse of removal.
The first two photos are for orientation.


Here is the sensor. I've highlighted the screw (1) and where you need to apply pressure to unlatch the connection (2).
The dot is where you place the pressure and the arrow is the direction of the pressure. You may need to wiggle it a bit for it to free up but you should here it *click* when you get it.
Be careful, you obviously don't want to break it. In fact I removed the sensor before I tried to unlatch the connection because of the awkward position.

This photo shows another angle of which tab to put the pressure on to unlatch.

Here's the new sensor. I'm not sure about the torque spec on the screw but the original seemed to come free fairly easily, so I just went until it was snug.
Don't leave it too loose though, you'll know when it gets tight.

That's it, hope it helps someone. I know I had a hard time finding the sensor.
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