Had it for 1 1/2 years and still love it!

I feel prompted to write a short review because of some of the reviews I read (including those for the 2004 version of the car). I have had my Quattro Audi A4 1.8T (Automatic transmission) since May 2004 and my wife and I have been very very happy with it.
What I like:
The interior is fantastic, extremely well put together and has a wonderful quality feel to it. We find the trunk to be very sizable and works very well for us. Some say there is not enough seating space in the rear. We haven't had a problem with that. I kinda think that if you made the car longer to give more room in the back, you'd end up with an Audi A6. Its also really useful to be able to lay the back seats flat like a station wagon/hatchback.
Its a nice car to drive, the Automatic is smooth and the tiptronic is there if you need it (I don't). I asked a guy with a 3.0 A4 whether he liked it. He said he would get a 1.8T if he had his time again because there wasn't a lot of difference. I don't know the validity of this statement but I find it perfectly acceptable - in fact I have to slow myself down on the highway because its easy to go too fast.
Some say its noisy - again, this is not something I have ever experienced. In fact I find it to be very quiet inside the cabin. The Quattro means you don't slip around in the Winter - literally, I was able to move around in the snow when others were spinning their wheels. That said, its also more expensive on the gas. I am comparing with our 1998 Honda Civic which is probably unfair but it is a factor to be aware of.
We got the lightening package and got the Xenon lights, the auto dimming mirror and the auto-lights which come on when its too dark. We love all of these and find it very useful.

What I don't like
The steering wheel is solid and a joy to hold but the steering itself isn't as precise as a BMW. There are no memory settings for the driving seat. My wife is much smaller than me so its not convenient. There is a slight turbo lag when you put your foot on the accelerator especially from still. I don't actually notice it now, its more something you notice when you first get the car.
My mother had a 2000 BMW 3 series and it has better visibility. The Audi A4 isn't bad but the BMW is better, but it was also $10,000 more and not as well equiped as the Audi.

Someone wrote that they would prefer to buy a Lexus. If you are comparing the two cars you are clearly missing the point. German cars like Audi, clearly are much better cars to drive and have much better quality interiors. Japanese 'luxury' cars are better value for the gizmos and gadgets. This isn't the focus of a Mercedes, BMW or Audi. This is either something you understand or you don't. Owning the Audi A4 is a pleasure because I love the quality of the car. I looked at some Japanese luxury cars and just felt that the owning experience would have been more 'functional' than an emotional.

I did read in Consumer Reports that Audi's (and BMWs for that matter) have average reliability. We haven't had a problem with it(although we have very low mileage on it). It is true that some of the previous year's models had a faulty copper coil in the engine which needed to be recalled and replaced. Unfortunately none of the German car manufacturers do as well as the Japanese ones.
I understand the new 2005/6 Audi A4 is a better drive than our model. I would love to try driving it one day.
All in all, I would absolutely recommend the car. Just try sitting in one and you'll know what I mean. If you do try and you don't get that special feeling....the car isn't right for you.
Hope that helps!