Some seriously great suggestions here that I would never of considered before, thank you all very much!
I'm concerned of the potential repair bills/part costs for the e46 or scoobies, aside from that they have more than enough stock power for me right now. The future modding potential for a scoobie is super tempting too.
I take everyone's point on putting my money on the best car I can rather than modding right away, solid advise and I see the logic. Plus it gives something to work towards and get excited about for the future, whilst learning to control the power of the new car in the meantime.
Something about Fords don't do it for me, and the suggested clios look beastly, but unfortunately too similar in looks to what I've spend the last 9 years driving, mainly Peugeot's, need a change from French cars.
Stormster - that's pretty tempting, seems like a good bang for my buck! gonna check prices.
Vish Petrol - liking the look of the celcia 190, do they have any resale value with 150k+ on the clock? fits perfectly within budget and some for potential known repairs. what are they like on twisties? are they easy to play around with for extra performance etc?
xs2man - yeah I think you're right, if I dont get a good enough engine to start with, I'll soon get bored regardless of any decent mods I put on.
sovietspybob - sounds like a good idea. I'm sure the more i'd spend and more time i'd put in, testing it out on the track would become important. I really like the 2nd scooby you linked, I can see myself owning that.