I will throw a curve ball at you. I went from e36 M3 to e46 M3 to B6 S4 to a B7 A4 to current B6 A4 USP avant (b/c I wanted to tune a sleeper wagon).
I would mod a B7 2.0 liter A4 and this is why. Note: I am not trying to upset anyone, I love Audi's and this is my feedback.
B6 S4 is an overweight slow pig with no cheap way to make it any quicker plus MPG suck. e46 M3 is a great buy but most tuned A4 turbos can run with them, still a great buy for the money. My old B7 real took well to APR Stage II, testpipe and exhaust. It was quick plus very reliable. I was dying to get a B5 S4 avant but agree with many postings here, it is dated and can get expensive. My dream would be to have the B5 S4 motor in my B6 USP Avant. I am thinking of going used 335i in 2 years when the tuners figure out the motor......
You really can't go wrong, best of luck in your decision!
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