We just went thru the same thing.
It was clear that the AWD was to be heartily avoided. We picked up an off lease 98 GLT from a dealer only auction (via a broker) with 50k miles for $18075 (USD). While I still have pangs of loss (I almost lost it at the recent trip to the LA Auto Show :) for the special order Ink Blue 2002 Passat Variant 1.8T 5spd with beige leather that is so much better looking and a fair bit better handling (not to mention the 5spd), the $7000 we saved was well worth it (not to mention that we ordered that car in October and it still hasn't arrived in the US-not even sure if its built yet). Our GLT as all the service stamps it should and is in pretty good condition (has a few scratches, but for the price...).

Sadly, it has already (purchased December 22 2001) required a $600 ABS computer replacement. Problem was intermittent and couldn't really have been detected before purchase. I hope this isn't a sign of things to come.

We compromised a little on the mileage because we wanted the GLT (and wanted to still save enough over the Passat to make the deal worth it). I did not like the noise and vibration-especially through the steering wheel-of the several N/A versions we drove. In comparison the GLT is smooth and quiet and has plenty of power. 90% of the time we use only the first 40% of the throttle-and really stepping on it is a nice surprise when needed (or just for giggles...but got to get some of that body roll down before I'm too comfortable doing it!).
We knew the T5 was out of our price range and seems to have more issues. Besides, we felt the GLT was plenty adaquate.

Best of luck!