The older jettas (97 - some 2000) did tend to have more kinks than most but VW got it worked out halfway through the 2000 season. Both are pretty reliable generally and while the subaru might have some cool bells and whistles (and probably some sweet traction or turning features) if you are happier with the price and exterior of the VW you should pick that - a friend just bought a 2002 VW Jetta with a diesel engine and has had nothing but good things to say. VW like Lexus has worked hard to make a good silver paint (as has Honda in recent years).