OK the big o ring does not go on the filter but it sits in a groove in the filter cover. The small end of the filter is inserted into the filter housing. Rule of thumb whatever the seal runs in use some of that to lightly lubricate the seal before fitting. So a smear of engine oil in this case. Yes Castrol Edge 5W-30 is fine, plenty other fully synthetics out there but that is what Audi use(d) You will want a 6 point 36mm socket for the filter cover and remember to get a new drain plug complete with washer. Yes I know some are reusable but I replace them. Get the engine up to temperature before raising it up to let the oil drain easier. Remember to torque up items as you fit them to the manual specifications. It is also crucial that the end is not broken off your dipstick as there is a very high chance you will over fill the oil level.
You must take care and safety is a priority. For a first attempt I would recommend the use of ramps first as the car is still fully supported. The undertray is not too difficult but you will no doubt be met with corroded and incorrect fasteners, some may even need drilling out!!
The standard car jack in my opinion is only really suitable in an emergency and never ever work on the car without something else to support it if the jack were to fail. I have seen cars roll off their jacks, so block a couple of the other wheels forward and back just to be safe. Far better to use a trolley jack.
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This image shows the location of the fixings on the undertray. The 2 arrows next to the wheels show the 2 nuts on studs that need to be removed - if still there and the 3 red circled ones fit into the subframe.
You must catch and dispose of the HOT engine oil correctly with you local council site.....
Here is another thread for a bit more information.
Really glad that you are keep to learn and impressed that you are asking questions.?