Had 2005 model for over a year, no problems. The servicing I have had has not been near as expensive as I expected (though I didn't go to a BMW dealership). Not very powerful in automatic but is more than adequate for your every day driving. Nice and quiet on the highway.
Nice, quiet and refined. Excellent handling.
Ride is a little firm on some crappy roads but that is a trade off with the good handling.

Excellent. Have had mine for six months now, very reliable, great fuel consumption, looks great, has a great ride. Got it through broker for $5k less than caryards so shop around to get a good deal. BMW for entry-level price and low kms is difficult to find, the BMW 1 series offers this. Fun to drive!
Full leather interior, electric sunroof, great turning circle, acceleration, looks
Windscreen breaks if you let the windscreen wiper drop onto the screen, 2nd cup holder covered by arm rest

A fantastic small car with just the right amount of bells and whistles. Overall I've had no problems with it after 5000km and I could be happier with my investment.
Pleasure to drive, good fuel economy, great turning circle
Minor body creaks when panels are heating and cooling down

The tire size of the back and front are different. They are run flat tires and no spare is required. Due to the soft compound used you require new tires every 20000 km. One set $1600. Not cheap.
Reliable and safe. Good design.
Cost of service and repair.