Don't rule out "ze germans". Our Rabbit is a blast to drive and has been 100% problem free (15-months old with over 20k on the clock). The new Rabbit comes with power EVERYTHING and TONS of options usually found in cars over $20k...a comparably priced Focus or Fusion has power NOTHING and very sparce options. A new VW built before '09 has a 4yr/50k warranty. The new '09 models will start with a 3yr/36k with free maintenance during that time.

Not sure if this has been brough up just yet, but the new Saturn Astra is also getting pretty good reviews. Essentially it is a rebadged Opel Astra from Europe. It is a pretty sexy looking Euro hatch in my opinion.