$40 -- $28 oil filters?

[Grant]

Hello all,

I'm the happy owner of a 2002 S6 Avant, just off factory warranty. So 
I'm about to do my first oil change.

I've looked around and there seem to be two kinds of oil filters for 
this beast. The true OE $40 ($28 at places like GPR and Blau) variety 
that looks to be about a foot long, and the $8 variety (at Blau, again) 
that is WAY smaller.

So what's the real deal here? Anyone have experience? Insight?  If it 
put this 32 gallon** filter on, can I change it every 3rd oil change?  
I don't mind spending it if its important, but this seems excessive. 
And I object to wasting money (hey, that's a really good bottle of 
Chateauneuf du Papes, right?)

Grant

** disclaimer. Its probably less than 32 gal