Hi,
I have a 03 1.2 VW Polo 3 dr and I can honestly say I would highly recommend it to anybody who anticipates only driving about 100m a week. Due to the nature of my job, some weeks I can drive about 400m+ and I have never had any trouble with it at all! Mechanically sound, find it spacious(but then again I have no kids so if you have then maybe a 4 door would suit), plenty of trunk room, easy to maneuver and park and I do enjoy driving it! Granted, next year I would ideally like to upgrade to a Golf but thats my own personal choice. As far as small cars go, I can't find any fault with the Polo - and its a VW which tends to hold its value as well.
Hope this helps.