Welcome to the forum
I would say if you want a fair bit of interior luxury go for a 2002-2005 B6 model Avant . In terms of engine power the 1.8T is perfectly adequate to pull well up hills. The B5 model interior is not as nice in my opinion ...
You can get it in sport or SE version with sport having stiiffer suspension set up and slighly lower to the ground + electric lumber supports on the seats..
SE has better standard equipment - More information displayed on the DIS (Drivers imformation Display) like outside temp/trip computer/ crusise control etc but the suspension is softer and ride height higher making it a bit smoother over bumpy roads in my opinion...
If you go for the 1.8T check to see if the oil has been changed reguarly as they can be prone to oil sludge build up and like any car if its been serviced according to manufacturer intervals you should be ok ...