I have not encountered anything that could be seen as a fault in the car.
The 1.6 litre engine with the manual has plenty of performance. The Peugeot dealer is left scratching his head to the fact that my car has the better performance over his 206 CC.
Handling is great, especially on the long windy roads and hills.
Road noise can be a bit excessive at times, even with standard 14 inch tyres.
They are great. I recently drove a 206 1.4 auto up through the Black Spur in Vic, and up some pretty steep mountains. It had excelent handling and steering feel. The engine just wanted to keep giving all it had (about 50 kw I believe), and the auto is one of the smoothest (albiet has slow changes).
Great little car.