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Thought I'd chime in with my slightly biased opinion.... =)

I just picked up an '04 S4 a couple months ago and so far I love it. It's not insanely fast (my NSX was faster, or at least felt faster), but it packs a very decent punch for every day driving. The overall package is what makes it shine. It's a good handling, fast, comfortable, good looking all around car. My roommate has a G35 coupe and although the amenities on the cars are pretty similar, sitting in the S4 just gives you a feeling of much higher quality. Audi interiors are fantastic imo. Nice materials, good style, button presses feel solid and have a nice click to them (compared to the Infiniti which feels much cheaper). Little things like that really add to the overall perception of the car.

Audis tend to depreciate a little faster than BMWs and Mercedes at first (although all 3 depreciate quickly their first 2-3 years) so you can get some really nice deals on them. Mine has the Audi CPO warranty which adds another 2 years or 100k miles. You definitely want to get a CPO car. German cars outside of warranty are bad news. I was very tempted to get an '02-'03 M5 but lack of warranty killed it for me. Hunt around and u can find a nice lower mileage '04 S4 with CPO in the low $30s which should be in your price range.

If you get the mod bug you can always throw downpipes, cat-back, ecu upgrade and u'll have roughly a 370hp car. A couple superchargers should be out in the next 6 months which will get u up to 500hp, but u can kiss the warranty goodbye. ;)

The big negative is that the 4.2L V8 loves gas. I do a lot of city driving and the computer is telling me I'm averaging about 14mpg. But, note, I am in Boston, the city that if you live in for 20 years apparently u'll have spent 6 months waiting at red lights! My lead foot isn't helping that either.

Between the 335 and a new S4 (similar price) I'd probably go with the 335, but given that u can save a bunch with a slightly used S4 my practical side takes over and I'd have to go with the S4.

Edit: I shouldn't down play the car's speed to much. On the highway going 80mph, put your foot down even in 6th gear and u'll be in "go to jail" speed in no time at all.
 
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