I've had my B5 for not even 48 hours now, but I'll take a stab here using what I know about cars in general...
"First what is the moddability of the two cars?? Which one is easier to mod and less expensive."
The B5 has been around for a while, so the aftermarket will have more for it. You can get a used B5 for a little less than 2/3 the value of a new B6. A turbocharged V6 will generally give you a lot more to play with than a NA V8. I wonder if it's even possible to shoehorn a forced induction system into the B6's engine bay.
"What is the max hp you could get out of a B5 S4??"
How much money you got?

That's always what it comes down to, with any car.
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