In the US, driver adjustable dampers come with the Sport Activity and M-sport packages; in this application, the dampers do not adapt to road conditions. Along with the Dynamic Handling Package, the dampers are both driver adjustable AND adaptive to road conditions. Without the Sports Activity or M-sport package, the Dynamic Handling Package alone includes dampers that are both driver adjustable and adaptive to road conditions.
If your only concern is to have adaptive and driver adjustable dampers, do not bother paying for the Sports Activity or M-sport packages. But if you want the sport seats, paddle shifters, anthracite headliner, bigger rims, and other cosmetic upgrades, get either of the sport packages.
This is only for US-spec 35i.
2001 Audi A6 Allroad 2.7T (C5); 2005 Audi A6 4.2 Quattro (C6); 2005 BMW X5 4.4i (E53); 2008 BMW 535xi Sports Wagon (E61); 2011 BMW X3 xDrive35i (F25); 2009 Audi A4 3.2 Quattro Prestige (B8)