I had a Focus Mk1 1.8TDCI for 5 years and was happy with the performance, especially given a Celtic Tuning remap which made the car much more responsive and improved economy by 2-3mpg (52-53mpg at indicated 75mph). The engine is noisier than the 1.6 and 2.0TDCIs though.
The engine is a known quantity now and the likely faults are known, i.e:
i) DMF failures - can occur from around the 60k mile mark, depending on driver behaviour.
ii) Cam sensor failure - this happened to me and stopped the car, but a cheap fix for a sensor you can easily fit yourself.
iii) Fuel pump failures - these seemed to occur in the early days but probably not an issue with the Mk2 version. Like all common rail engines, needs an uniterrupted supply of quality diesel (i.e: avoid supermarket) to lubricate the pump.
iv) EGR clogging - due to soot build-up. Best solution is to replace as cleaning does not seem to have worked long-term.
If there's no DPF then that's a good reason to go for the 1.8TDCI, unless you routinely drive long distances at high speeds.
Check out FFOC dot co dot uk for plenty of information on the Focus range etc...
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