Adam- Mine is an automatic, so it lags BAD, but once it hits about 3500 it just takes off. That said, I drive it around town all day without even hitting the turbo just fine. The lag is not so bad with the MT. Their MTs were a bit fragile and a big complaint earlier in the year, supposedly beefed up for the 2003, but that was one of the reasons I went with the auto. If I was buying a 2003 I would go with the manual. Check the i-club forum and you will learn just about everything concerning the car.
As far as the interior, I really like mine. It is no BMW, but works just fine for me. The seats are great, I like the stereo, the only thing I miss is a sunroof, though there are some aftermarket ones out there. But you have to remember this is basically a "tin box" car with awd and a turbo. If it was nicer inside I probably wouldn't be able to afford it.