s3 or corrado vr6 storm maybe?
Storms are usually knackered. Ive seen a lot around £2k lately. The one im going to see is better than a storm tbh.
MX5.
My wife doesnt even like the MX5. What does that tell you. Im not keen either, and yes, i know they handle well.
Andrew Chappel has a very nice MK2 G60 for sale....only just over your £4k budget 
Its actually £5k. And in typical Volkswizard style, massively over priced.
Not VAG but..... Maybe Honda Integra type R. Most fun I've ever had from a standard car, genuinely sorted out of the box. 98 spec JDM is the one to go for
Considered it, but i just dont like the TypeR image.
Clio 182 you've already recommended but would be my choice
otherwise a nice clean Mk2 GTI
maybe Mk3 VR6? I know the Mk3 was the unloved one, but it's a lot of car for the money
Ive been to see 2x 172 Cups and 1x 182 locally. They were all a complete POS. Finding a decent one is the challenge. Could end up driving round the whole country. All were low mileage too, but completely ruined. Even in standard form, they had been ruined.
Boring options. go for a wild card.
Audi S2 2.2T Quattro. Rare as hens teeth and stunning!!
http://www.pistonheads.com/sales/4107056.htm
Loads of these knocking about for 4k or less
I love the S2, but they are complete money pits. I know a lot of people that have owned them and they have literally had to remortgage their homes to keep them running. Could soon get out of hand with one of them.
M3s and M5s are too expensive, but.....
what about an Alpina B3 or an Alpina B10
That will get you that same performance for alot less cost!!
Not in Birmingham. I dont want everyone thinking im a dealer.
