I hear the current 5th generation platform cars are much, much better than the mk4 cars from a reliability standpoint.
Jay, I'm a former 91 GTI 8v and 92 Corrado VR6 owner. I hear you on the 'never again'...even though clean mk1 GTI's and Sciroccos tempt me often.
Now, if I was this kid, I'd also take a long hard look at the Mazda3 hatchback. By all accounts, it slots in between the Rabbit and GTI. In fact, I just might buy myself a late model Mazda3 one day real, real soon.