The 180-horsepower 1.8 T is a joy when paired with the manual gearbox. It's quick, at times abrupt, but incredibly smooth. It delivers brisk, off-the-line acceleration. There's a surprising amount of torque available, more than enough to spin the front wheels. Traction control steps in when needed to minimize this, enhancing control. This 1.8-liter turbocharged engine is so smooth and revs so freely that you're encouraged to put the throttle down. In spite of its power, it nets an EPA-rated 24/31 mpg city/highway.

Accelerating through the gears, there is some turbo lag down at the bottom of the rev range. Under normal conditions, launches can be a little slow unless you rev it up and drop the clutch. With the turbocharged engine, there is little torque available below 2000 rpm. It starts to build at 2500 rpm and comes on quickly after that, but it isn't the explosion of power that big turbochargers deliver. It's more like the progressive acceleration of a smaller turbo, more fluid and linear.

We have issues about pairing the 1.8 T with the five-speed automatic Tiptronic transmission ($1075). The automatic seems to get confused by the turbo in city traffic, often leaving the engine caught out, bogging just when we wanted quick response. When asked for moderate acceleration, the transmission would downshift, there would be a surge of power, I'd ease off the throttle, the transmission would upshift, the engine would eventually bog again, and the process would start all over. It's far more subtle than the description above suggests, but it annoyed me on downtown streets. This car is too good to be saddled with this combination. Therefore, we strongly recommend the manual gearbox with the 1.8 T. We recommend pairing the automatic with one of the other two engines, which are naturally aspirated (non-turbocharged).

GTI VR6 comes with Volkswagen's innovative, narrow-angle V6 engine that delivers 195 foot-pounds of torque. The recent power boost is the result of a switch from two-valve to four-valve heads. Strong torque would make this a great engine for the automatic, but Volkswagen doesn't offer that combination.

The base 2.0-liter four-cylinder engine offers good performance for commuting. It feels flexible, holding its own in traffic, and is comfortable when cruising steadily at 80 mph. It isn't an engine that inspires enthusiast drivers, however. The 2.0-liter engine is EPA rated at 24/31 mpg city/highway: good, but no better than the GTI's 1.8 T engine. Its relatively low price still makes the 2.0-liter a good value, however. This should be a good mate for an automatic, though we haven't tried it that way.

If fuel economy is at the top of your shopping list, consider the 1.9-liter TDI, a turbocharged direct-injection four-cylinder diesel engine. Diesels have a reputation for being noisy, smelly and slow, but Volkswagen has perfected the design. New emissions systems have cleaned up the exhaust scent, and the TDI is only a shade louder than the 2.0-liter gasoline engine. At highway speeds, you'll barely notice the difference. You sacrifice some performance, but the improvement in mileage is dramatic: it gets an EPA-estimated 42/49 mpg. That's competitive with hybrid gas-electric cars from Honda and Toyota.

No matter which engine you choose, the Golf offers excellent handling and a comfortable, well-controlled ride quality. With compliant coil springs and gas-filled shocks, the driver feels connected to the road while vibrations and bumps are comfortably muffled. MacPherson struts in front and the independent torsion-beam suspension in the rear help keep the car rooted to the road. Aggressive maneuvers generate little body roll. The longer wheelbase and the much stiffer chassis of this fourth-generation Golf reduce vibration on rough roads and improve handling in tight corners.

The Golf's firm brake pedal provides good feedback to the driver. This car is stable under hard braking. ABS, which comes standard, is ready to prevent wheel lockup, allowing the driver to maintain steering control in an emergency stop.

Volkswagen's Anti-Slip Regulation, or ASR, is a great system and can help you continue tracking around a corner instead of skidding off the road into peril. ASR detects wheel slippage and applies braking force to that particular wheel. Working with the Electronic Differential Lock at speeds below 25 mph, ASR controls throttle response to maximize traction and minimize slipping for enhanced driver control in tight cornering situations. Pressing a button in the center of the dash turns ASR off.