Roly - the only answer is to see which you prefer by means of a long test drive in each. I so wanted to like the 3-series (320d Touring - same as the one you're looking at) but:
(a) I didn't like the notchy manual gearchange, and the automatic kept making me think of the performance that I was missing;
(b) I'm 5' 7" with an average sized body but shortish legs, and I just couldn't find a comfortable driving position: to depress the clutch fully I was too near the steering wheel. (It's the same in my old Z3, but this is a fun car and it doesn't seem to matter as much as it would in an everyday car).
Also, it depends on your style of driving: a BMW is at is best when pushed, whereas an Audi suits a more relaxed style of driving. Of the two I'd have the Audi (although I'd look closely at the offset pedals on the new model which road testers keep complaining about) - but I can't resist mentioning that my Octavia estate with the 2.0 TDI engine as in the A4 is £7,000 cheaper. I love Audis but I couldn't afford another 2.5 TDI (2.7 now) and for the 2.0 I just couldn't justify the extra cost.
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