Audi tends to fit a Haldex clutch and four wheel drive to it's smaller quattros so expect this to be mostly front wheel drive with the rears kicking in when necessary.
What this does highlight is that if the S1 comes with 265bhp then then the prettier, but heavier, S3 is going to be outgunned as it also has 265bhp. The S3 has always been a bit wheezy for an S. Hopefully Audi's next step will be to ramp it up to 300bhp or more.