The GTI draws its energy from VW's 2.0-liter four-cylinder engine turbocharged to boost output to 200 horsepower and to 207 pound-feet of torque, with peak torque holding steady all the way from 1800 to 5000 rpm.The GTI can rocket from a standing start to 60 miles per hour in just 7.0 seconds, says Volkswagen, while delivering an EPA-rated 23/32 mpg with the manual transmission, 25/31 mpg with the Direct Shift Gearbox.This latter bit of F1 wizardry can be left in a fully automatic mode or can be manually manipulated by racing-style paddle shifters mounted on the steering wheel.

We delighted in the GTI's quick and precise steering.We appreciated the support and design of the Interlagos plaid seating surfaces and the versatility of its hatchback design.Now also available as a five-door, enthusiasts with families no longer have an excuse.

Standard features include air conditioning; well-bolstered, eight-way-adjustable seats with Interlagos plaid cloth inserts; a 40/60 split folding rear seat; blue-tinted glass; xenon high-intensity gas-discharge headlamps with washers; halogen fog lamps; turn signal lights on the exterior rearview mirrors; variable intermittent windshield wipers; a height-adjustable center armrest; cruise control; trip computer; remote unlocking as well as power windows that can be opened or closed with the key fob; aluminum alloy pedals; a 10-speaker audio system with six-CD changer and MP3 player; a tilt and telescoping steering column with audio controls on the steering wheel; plenty of cup holders; carpeted and covered cargo area; and 17-inch summer performance tires on alloy wheels.All-season tires are available as a no-cost option.

Package 1 ($1,370) combines a power sunroof with satellite radio (XM or Sirius).Package 2 ($3,160) also includes the sunroof and satellite radio, and adds dual-zone climate controls, leather front sport seats with heat, and heated washer nozzles.A DVD-based navigation system ($1,800) can be added; it displaces the CD changer from the dash, but VW offers the choice of either relocating it to the center console, or deleting it in favor of an iPod adaptor.(The Navigation stereo will not play MP3 CDs.) Satellite radio can be ordered as a stand-alone option ($375); as can Hufeisen 18-inch alloy wheels ($750) with summer performance tires.Dealers can install a set of rubber floor mats that includes a trunk liner ($185), and a lower-body aero kit ($1,650).

Safety equipment includes front airbags, front side-impact airbags, side curtain airbags, three-point harnesses for all seating positions (wear them), and LATCH child seat anchors.Anti-lock brakes (ABS) also come standard, along with Brake Assist, Electronic Brake-force Distribution (EBD), Electronic Stability Control (ESP), and traction control (consisting of anti-slip regulation and electronic differential lock, plus engine-braking assist).The four-door offers optional rear-seat side-impact airbags ($350).

The classic GTI emblem is displayed like a well-earned badge against a black honeycomb grille that features a red accent stripe in the shape of a slightly devilish smile, all traditional GTI styling cues.

The shape of the headlamp covers, which have an almost winking eye form, accentuates this mischievous attitude.Three large, black honeycombed air vents in the lower fascia enhance the strength of the front end, with large fog lamps housed in the outboard intakes.

Viewed in profile, the windshield rakes quickly back over the front of the passenger compartment and the roofline ends with a wind-cheating spoiler above the back window.This view also gains visual strength and a sporty stance from the way the car's waistline rises and the side windows taper above the rear fenders.Also noticeable in the profile view are the red-colored brake calipers that show through all of the various wheel choices and proclaim that this is an all-around performance car, designed to stop as well as it goes.

Even with the airy wheels and showy brakes, however, the new four-door can't help but look a bit more utilitarian than the two-door.It's still undeniably sleek and handsome, but it surrenders some of the two-door's youthful cheek.

Like the profile, the rear view is clean, with large tail lamps mounted high on the car's haunches with twin exhaust tips peaking out from the lower left side of the black bumper.

The GTI's cargo area is fully carpeted, and cargo can be secured via four tie-down hooks.There's also a cargo cover to hide your gear; the cover can be removed when carrying taller objects.

The rear seat can hold three people.It's best suited for two, however, who can get more comfortable by tipping out the wide center armrest.Those sitting in the back get cup holders and storage cubbies, and plenty of rear legroom if those in the front seats aren't tall.

In the two-door model, access to the back seat is easy because of a feature that VW calls Easy Entry.Here's how it works: You tip the front seatback forward until it snaps into a locked position, then you can slide the entire seat forward to open a good-sized path to the back seat.Slide the front seat back and it stops in its original position and the seat back also returns to its former position so the driver or front-seat passenger can climb in without having to make any readjustments.It works well.

The front seats are nicely bolstered so you won't slide around while exploring the car's dynamic capabilities.However, this is not a car for everyone.The seats may be too snug for some, and others won't like the black, gray, white and red-striped Interlagos plaid pattern in the seating and back area between the bolsters.GTI faithful will love these seats, however, and consider the Interlagos plaid an iconic part of the original GTI.It's named after the racing circuit used for the Brazilian Grand Prix.Those who don't like the plaid can opt for black leather seats with a small GTI emblem stitched into the upper part of the seat back.The front passenger's seat offers good legroom and easy access to climate and audio controls.

Drivers will like the way the three-spoke, leather-covered and flat-bottomed (like a racecar) steering wheel both tilts and telescopes to enhance steering control and comfort.The alloy pedals with rubber grips are nicely placed for heel-and-toe shifting, and there's a large dead pedal for your left foot when it isn't depressing the clutch.

The steering wheel houses audio and trip-computer control buttons.On cars with the Direct Shift Gearbox (DSG) transmission, racecar-style paddle shifters are on the steering wheel right at your fingertips.

The instrument panel features VW's blue-lit gauges with red indicator arrows as well as a trip computer to track miles to empty or to display redundant navigation system instructions within the driver's line of sight.The gauge cluster is very readable, even in bright sunlight when the driver is wearing polarized sunglasses.For '07, the radio buttons are finished in silver, instead of black, a change not everyone will like.And the cruise-control switches have been revised for more intuitive operation.(An '06 interior is pictured here.)

Not only are the seats height-adjustable, but so is the arm rest on the center console, so you can put it high for comfortable cruising or lower it so it won't interfere when you get assertive with the six-speed manual shifter.Cup holders are positioned on the center console so they don't interfere with gear changing.And there's a grab handle on the center console so the front-seat passenger can hold on.

When you want to downshift for curves on mountain roads or to make a pass on a two-lane in the country, the clutch is very light with easy pickup, the shifter has short and sure throws, and the engine spins into gear immediately.On winding pavement, we preferred the six-speed manual, which allowed us to feel truly connected to car and road.

The DSG automatic gearbox functions essentially as a computer-controlled manual that shifts at the speed of electrons.With two clutches and two countershafts, it can literally engage the next gear while simultaneously disengaging the last; which is not possible with conventional manual or automatic transmissions.Volkswagen claims acceleration performance is better with the DSG than with the manual gearbox; 0-60 mph takes just 6.9 seconds with the DSG.And if you want to play with gears yourself, you can, using Formula 1-style paddles on the steering wheel.

We've driven the DSG in other VW Group vehicles, and it is a marvelous device, especially if you have a commute heavy with stop-and-inch traffic.Compared to the manual GTI, the DSG-equipped version surrenders 1 mpg in its EPA highway rating but gains 2 mpg in city driving.

Steering is quick and precise, and the suspension is responsiveness personified.The GTI benefits from MacPherson struts in front and a four-link suspension in the rear.We found the response of even the all-season Continental tires to be up to enthusiast standards, though we think that serious enthusiasts will want to consider the larger 18-inch wheels and high-performance summer tires.Its 35.8-foot turning circle makes the GTI maneuverable in tight quarters.

Grasped by those red calipers, the big ventilated front discs and big rear discs stop the GTI quickly and surely.ABS comes standard, helping the driver maintain steering control while braking.Brake Assist helps the driver maintain full braking pressure in an emergency stopping situation.Electronic brake-force distribution balances braking front to rear for quicker, more stable braking.

Even though nearly 60 percent of the car's 3100 pounds is supported by the front wheels, the GTI does not exhibit the tendency to understeer so prevalent in most front-wheel-drive cars.To help the driver keep the car on course, the GTI comes with electronic stability control (ESP) as well as traction control.

NewCarTestDrive.com correspondent Larry Edsall drove the new GTI in the Phoenix area.