I had a '97 Jetta TDI and drove it for 45K. Resale was so good that it made more economic sense to trade up to a 2000 Golf TDI than keep the '97. (I did a lot of research and the upgrade was not fueled by new car desire. )
I liked my '97 Jetta a lot, but LOVED my 2000 Golf. The Golf was so solid, quieter, smoother, and just generally better. I used to call it "my little Mercedes" because the interior reeked of quality. It drove so well. The Golf felt like an extension of my hand. Long story short, I'd still have it if I didn't have an experience which ended with a crash, a loud explosion in my face and the smell of gunpowder in the car...
The biggest difference between the '97 and the '00 was the electronic fuel injection. The '97 had some minor fueling glitches. It would develop a loping or surging action when slowly negotiating around a parking lot with a cold engine and light throttle input. It would increase in severity and the only remedy was to push in the clutch. It also was nearly impossible to blip the throttle to match revs on a downshift.
The '00 was absolutely seamless.
Southeastern PA is TDI mecca. There are tons of them here. I know too many TDI drivers to list, but here are a few. My brother has a '96 Passat TDI and it has the same fueling glitch. My parents just bought a '00 Golf TDI Automatic (against my recommendation on the auto). Theirs drives much like mine did, except with the automatic sluggishness.
If I were you, I'd opt for the newer, A4 body style. If I bought another, I'd go for the A4 Golf 5-spd. I got 2-3 mpg better fuel economy with the '00. I would average 44-45 mpg, commuting and about 52 mpg on the highway. The best that I saw was on the Blue Ridge Parkway and Skyline Drive, almost 57 mpg!
If you want to get depressed about all the neat diesels that Europeans can get, pick up an issue of the British magazine, CAR. They get all of the neat stuff. Well at least we Americans have our Cummins-powered Rams.