R32 as previously stated, the driving feel is so good. The big chunky steering wheel and the koenig seats. Miltek exhaust and an intake will enhance the sound of the V6, where the S3 does not have no note to the engine, almost sounds like a diesel upon start up! Out of the box R32 handles alot better and the standard brakes are pretty decent too. Im pretty sure heated seats as standard, mine had armest, sat nav, cruise control, auto dim rear mirror and a few other extras.
Depends on how much your looking to spend...but if I was to go down the R32 route again, it would have to be cams or turbo, just depends how far you want to take it. The only thing that puts me off the R32 are the amount of reps there are! I dont know why just annoys me and whilst I had mine there were a few about and it put me off my car to an extent LOL. R32s like a drink though and around town they can prove to be very heavy on fuel but to be expected from a 3.2 V6, my suggestion to you drive both and take it from there...also depends on what your budget is!