i've got a 2000 beetle, penelope, (a present from my grandfather). it's an ok car, i wouldn't buy another one and i tell everyone i know not to buy it. i've not really had any major problems with it, but things just keep falling apart on it. i had my passenger side window mechanism break and the window was stuck down (300$ to fix), i've had my driver's side window lever pop out at least 4 or 5 times. my car locking mechanism is broken, when i bring it to get the oil changed if i don't leave the regular key it honks like crazy and they can't shut it off (they got really mad at me for that once, so i always give the normal key now!). i've had the airbag warning light go off 4 times each time they fixed it for about 3,000 miles then it would go off again, until i think they finally just disconnected it, because it hasn't gone off since about 2002. the speaker system broke on me as well. when you need a headlight changed you either have to look up online how to hack into the headlight panel or you will be paying 30$ to have the headlight changed (luckily my dad fixed it for me, so it only cost me 2$).
personally, i'd look at a different car, but that's just my issues with the beetle. the reason i did buy it back in 2000 (i was going to get the honda crv instead) was because of the awesome crash test rating. i've seen mangled pictures of the car where people walked away unscathed. amazing.
my gas mileage is ok, nothing spectacular (~28 mpg highway, 22 mpg city). my boyfriend gets much better gas mileage on his 2001 volvo than i do in my car. the beetle is a very heavy car.
i'd look at buying a scion. they're made by toyota and they seem to be pretty good cars. i'm looking at buying one of them at some point, either that or the honda fit or toyota yaris. right now i have too many loans to have to put up with a car payment. some day though.