I have a 2003 Neon SE, with a 5 speed and AC... All I wanted on it since I put in my own stereo. I bought it new for a commuter when gas first hit $2/gallon. I've got 60,000 miles on it, which is low but for 2 years my commute was 14 miles roundtrip... Its been all over the western part of the country and I've put 2 sets of tires on it.
I get about 30+MPG depending on where I go and how much stuff/many people are with me, with a best mileage of 35 on a trip with hills and the AC going.
It can be driven in a spirited manner, but it is a little softly sprung for that, and the 175/70R14s aren't all that good for that sort of driving.
It might get traded next year for a Jeep Patriot for commuting.
I wanted the 2003 SRT4, but the insurance would have been a killer... And the seats were too tight a fit for my 6'3" 270# ass. And it rides really rough, but handles like a dream.
Headgasket problems were first generation, second gen seem to have fixed theat, 2000 and up.