Sorry I should have mentioned about being aware of the 5 seconds but it just doesn't do it. It certainly doesn't do it just releasing the handbrake. I've also tried playing about with different pressure on the brake pedal but again I can't fathom it out.
I think you are probably right re needing some other setting changed.
I went along intent on buying the Sport rather than SlIne until the salesman showed me them side by side and the SLine won. It just looked better more aggressive / sporty in my eyes with better equipment and seats. Half leather SLine embossed, black headlining. Plus because it was dearer he could take more of a discount off and slightly better residuals it worked out not that much different in price that was until I stacked it with options 
I don't think there is that much of a difference now though between the 2 from what I've read on the A1 forum although haven't seen for myself.
Aye the S-line looked a little better, but not £2k better for me (even though we would see half of it back in residuals). 17" alloys over 16" alloys - yes they look better, but the facelifted Sport's alloys look a hell of a lot better than the old ones we saw on the Sports we saw on the used forecourt - 17" wheels cost £500 more on the options list. The leather seats look a little better, but most of the leather is on the bits you're not making direct contact with the seat and everything else seemed superficial enough for me to not want to spend the extra. If the Sline had 17" wheels and Xenons then i'd have spent the money.
The Sport doesn't look hugely aggressive, so our initial thoughts of Mythos Black were soon forgotten - black suits aggressive looking cars. We liked the Floret Silver for the contrast with the grille and associated trim. I really liked the Misano red but the missus didn't and at the end of the day it is going to be her car (even if I put more miles on it than she will), so Floret it is.
Knowing I had the R for real fun also helped in the decision - I didn't need out A1 to look or be overly sporty
Hill hold will likely work in much the same way as it did on the pre-facelift MK3 Scirocco. You put your foot on the brake, let the handbrake off and the brakes will hold for 5 seconds (2 seconds on the Scirocco). You need to have pressed the footbrake while stopped for the hold to come into play.
We were at the Audi garage again last night so the missus could see a new style A1 Sport with the new wheels. Someone was revving a new RS3, it was farting and popping away as the revs died down following a press on the throttle - did sound far more of a beast than my R does.