After many annoying posts from me to this, and other boards, looking for some magical guidance, I finally pieced together everything I needed to create a working CF image to resurrect my fatally wounded Audrey. Pleas also bear with me on the detail I will put into this as I have noticed many people who want it just plain spelled out - like me! 
First off - if you haven't broken your Audry, make a CF image from her immediately upon gaining root access. I know I wish I had. There are several wonderful places to find out how to do this like:
For Gaining Root Access:
http://www.3rdmoon.com/crusso/audrey/#How can I update my Audrey's Software?
And
http://www.3rdmoon.com/crusso/audrey/#How can I add buttons to the action palette of my Audrey?
For making the back-up:
http://www.3rdmoon.com/crusso/audrey/#How can I create a backup CF Image?
These are all links to the d*mn fine Audrey FAQ hosted by Chris Russo. Thanks Chris for putting this all in one place.
NOW FOR THE NITTY GRITTY.
1. You must first gather all the tools and information you need. You will need:
a. The correct size of your flash card (so I guess you need a CF card too, based on all my reading it should be at least 20Mb). See:
http://www.linux-hacker.net/cgi-bin/UltraBoard/UltraBoard.pl?Action=ShowPost&Board=3Com_Audrey&Post=905&Idle=0&Sort=0&Order=Descend&Page=0&Session=
Please note that the correct size is calculated by converting the "Capacity" from Hex (F500 or whatever yours reports) to decimal (you can do this using the calculator supplied with Win2K, simple change it to scientific - choose view and then scientific - change the format to Hex, type in the value F500 and then change the format to decimal again, wallah!) and multiplying that decimal (62720 in my case) by 512 (the number of bytes in a sector - ignore what Audrey reports). WRITE THIS NUMBER DOWN, mine was 32112640 (SanDisk 32Mb)
b. A valid image. There are many around, but for a simple, clean basically unhacked (so you can have the fun yourself) I would suggest one off of:
http://www.audreyhacking.com/modules.php?op=modload&name=Downloads&file=index&req=viewdownload&cid=5
I would choose either "UpdateWithShell.cf" or "UpdateWithShellPlus.cf" the one labeled "1002074338 Image" also includes the boot loader image. After all the trouble I've had I would avoid flashing the boot loader like the plaque, but hey - it's your Audrey, just because you can't buy anymore . . .
ALSO - you may want to grab "jayklm's image" not neccessarily for the image itself (I think it is also a boot loader image), but included in the archive is mkcf (next step), md5sum (a utility you can use to do checksums on the images you just downloaded - which also came with files that tell you what the checksum should be) and NTRW which unfortunately doesn't seem to work under Win2K very well. BTW - if your checksums don't match - don't use the image!!
c. mkcf.exe utility. This allows you to expand the original file size of the image to match your card capacity. This can be found in "jayklm's image" or at:
http://www.sowbug.com/audrey/hack_index.html
Despite how much cursing I did at this utility, thanks Sowbug, it really does work, it was just windows screwing it up (also thank you for the source archive as I ended up compiling it on my new QNX box without so much as a thought - and I've only done that like twice in my life - good job!)
d. Here's the twist, you need the unix dd utility for Win32. Amazingly, I found that at:
http://www.datafocus.com/eval/
You want to download the "MKS Toolkit for System Administrators Demo". This is a 30 Day free trial (did I also mention 36Mb, but look around, there are smaller versions, I just don't know if they have dd or not), so you have to fill out some information to get it, but it's very cool. It may even be worth the actual $300 single user license, but all you want right now is dd, so . . . For more information on dd: http://www.datafocus.com/docs/man1/dd.1.asp
e. You need to know the "Physical Disk Drive Device Name" of your CF Reader/Writer. It will be something like "//./PHYSICALDRIVE0". I can only vouche for my USB, SanDisk SDDR-31, but you should be able to find this by the following procedure:
1. Start -> Programs -> Administrative Tools -> Computer Management
2. In the left hand window, expand "Storage" (by double-clicking)
3. Then expand "Removeable Storage" (by double-clicking)
4. Then expand "Physical Locations" (by double-clicking)
5. You should see a listing for your device. Mine says: "SanDisk ImageMate II USB Device", but I also see my CD and CDRW as well as the flash card on my printer so I think you should be albe to find yours.
6. Right mouse-click your device in the left hand window and select "Properties"
7. Select the "Device Info" tab of the property sheet
8. Look after the entry "Device Name" and you should see the real name of your device. Mine says "\.\PhysicalDrive3" (Please note the difference in the slashes used in this property sheet and the slashes used later for the dd command. You will notice that dd uses the appropriate UNIX format, not the botched windows format - and that comes from a 3 time MCSE)
2. All that just to get to step two huh? Well you need to extract the images and mkcf utility into a directory using an archive utility like PKZIP. I would suggest a new folder at the root of one of your hard drives, as I originally had it buried 20 directories deep and it was getting to be a pain since much of this needs to be done from the command prompt. Also install the MKS toolkit and your CF Reader/Writer. You will probably have to reboot many times - despite this being Win2k.
3. For the following I will assume that my images and the mkcf utility are in the d:\images directory (cause mine are, yours may vary)and I will be using the "UpdateWithShell.cf" gotten from the above link to the Audrey Hacking Site. So.
a. Go to a command prompt (Start -> run -> "cmd" <enter>)
b. Go to the directory you have your images in. (d: <enter> cd images <enter>
c. Create the correct sized image file:
d:\images>mkcf UpdateWithShell.cf audrey.flash 32112640
Again where "d:\images>" is the prompt for my system, "mkcf" is the utility, "UpdateWithShell.cf" is the image you've chosen to use "audrey.flash" is any filename you choose, I just liked this one, and "32112640" is the size of the CF card that you wrote down in step 1.a. Here is my actual display and output:
D:\Images>mkcf UpdateWithShell.cf audrey.flash 32112640
Read file of size 16515072.
File checksum is 7b1eb7aa.
Creating output file 'audrey.flash' of size 32112640...done!
d. Get your pretty new image onto the CF Card. Here is my display and output:
D:\Images>dd if=audrey.flash of=//./physicaldrive3
62720+0 Records In
62720+0 Records Out
Where "audrey.flash" is the file you created in the last step, "//./physicaldrive3" is the device name you found for your CF Reader/Writer in step 1.e.8. and "62720" should be the same number you converted from Hex in step 1.a.
e. If you want to quick verify your image and you have the NTRW utility, then try this:
D:\Images>ntrw read return h:
Where "return" is simply a filename which doesn't already exist and "h:" is the drive letter Win2K assigned to your CF Reader/Writer. My command and output look like this:
D:\Images>ntrw read return h:
NTRW v2.00
Removeable media
Cylinders: 0:3
TracksPerCylinder: 255
SectorsPerTrack: 63
BytesPerSector: 512
bufsize is 65536
32096256 bytes written 1 bytes: 0
I also had some sort of CRC error at the output of the command - 'cause as you notice NTRW only thinks the CF is 32096256, not 32112640, but that doesn't matter 'cause if you do a directory listing of the file you pulled off the CF
D:\Images>dir return
Volume in drive D is HOPE
Volume Serial Number is 2471-5ABF
Directory of D:\Images
01/03/2002 08:09p 32,112,640 return
1 File(s) 32,112,640 bytes
0 Dir(s) 905,936,896 bytes free
You will notice that the file size of "return" that we pulled off the CF is exactly the size we wanted in the first place.
YOUR CARD SHOULD NOW BE ABLE TO FLASH AUDREY!!! THANKS FOR YOUR PATIENCE.
If you need more info - like how to boot with your new image on Audrey, try that amazing Audrey FAQ at: http://www.3rdmoon.com/crusso/audrey/
Thanks to everyone who helped and all the great people on this board for their insite, mistakes, etc.