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^^^
S3 is a good choice. Nice interior, good amount of power, fairly practical. Also responds to mods well - just a tune will get you 370 hp/383 tq. I drove a friend's modified S3 at the track (Stoptech BBK, H&R springs with OEM adaptive dampers, APR tune, exhaust, etc.) and it was pretty quick out there. Might also consider a Focus RS.
Personally though, if I was shopping for an AWD sedan I'd be looking hard for a lightly used Evo 8/9. They're not the prettiest cars inside or out, but I love the raw feedback and responsiveness of them.
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