Tim - If you want to get involved with the car either go for RWD or FWD I personaly would not recommend 4WD despite having a 4WD car. Taking into account the fact RWD cars are few and far between chances are you will need to go FWD, if you go FWD then don't go any bigger than an Astra. If you want a bigger car then it has to be RWD and yes if it's a turbo for everyday driving I'd say go for 4WD.
A few very cheap (about £1500) cars I'd consider are:
Peugeot 205 1.9GTi (on carbs or Mi16 conversion)
Ford Sierra XR4i (200+bhp turbo conversion)
Renault 21 Turbo Quadra (4x4, Up the boost for 200bhp)
It's actually quite sad, most of the time I am a granny on the roads. Well not quite, I drive to the speed limit round anything urban but like the occaisional blat on country roads or the motorway. For this reason alone a car that's quick up to 70 is pretty much ideal, hence why the GTE was good. Great pace low down and excellent point to point car.
For normal driving though it didn't really captivate me and I wanted something a bit more recent, just a nicer habitat to be in when you're not caining it, a cruiser-esque car.
I also sold the car now so as to get ok money for it, which I did. In a couple of days time I have the 'free' use of a car with 12 months MOT and 6 months TAX, it's comfortable and pretty reliable but i can forget playing with anything quicker than a Golf 1.6 CL for a while; confident I'll get it's 105 horses revving again though.
I think a FWD turbo with LSD would be a nice move from the red-tops I have religiously owned.