Need Help desparately. A6 won't run.

[John Naitove]

Today my wife was driving my 95 6Q Avant. She wasn't 1/2 mile from the
house (car hadn't been driven since yesterday) when the oil light came
on. Since I was off BMX racing she stopped, turned off the engin and
checked the owners manual which she interpreted as the the oil being
hot, but since the oil temp guage said otherwise, she turned around and
started to come home (up a steep hill).  . The light came on, and the
engine started sputtering and emitting black smoke so she parked it.
When I returned home, I checked the oil which was down about 11/2-2
qts.  I added oil and started it. It started up, sputtered a bit then
stalled. When I tried to restart it, it turned over but wouldn' t start.
It has 72k miles. The oil was changed about 4000 miles ago. The fuel
filter was also changed when it was supposed as scheduled. I drove the
car all day yesterday. It ran fine but I heard a slight noise in the AC
ducts. I thought that that might be due to the hose that the
condensation runs out of being clogged from all crap falling out of the
oak trees lately. HOW BADLY AM I SCREWED?