I haven't had that much problem with my Peugeot.
The car is not a big fancy executive car that if something went wrong with it this would be unacceptable, it is a small economical and reasonably priced car with which you get what you pay for.
The passenger seat has broken a couple of times by ceasing or completely snapping the mechanism when moved forwards to gain access to the back seats. This was slighly annoying, but nothing that could not be fixed.
Apart from that, my Peugeot is a great car, maybe not anything expensive and fancy, but my pride and joy.
The engine is nippy enough for a 1.1, and seeing as I am only 17 and recently passed my test, it is quick enough for me.
The car handles beautifully on all road surfaces.
The pedals are rather close together though, and having size 11 feet there is not much room to move about down there.
The car is bigger than it looks inside and being 6ft 2 inches tall, I can fit in easily and still have 3 people fitted comfortably in the back with my seat back to the limit.
The economy is becoming better and better with every 1000 miles.
In conclusion, if you want a small car that looks great and has room for occassional passengers, by all means by a Peugeot 206. If you want a family car with room for luggage, buy a Vauxhall Vectra.
I also have a 206 HDI and have had no end of problems with the seats. The drivers seat whilst my wife was 35 weeks pregnant decided not to lock into position and shoot forward into the steering wheel and cause damage to her lower back. Yet again We were involved in a accident where a car hit us from the rear and the passenger seat which I was in decided to go back through the ratchet system so I ended up lying down. We went to the dealers and told them about this and one of the mechanics said the ratchet system was too small for the seat. We were informed by Peugeot in writing that this can happen if the passengers body weight was too much, however I'm only 14.5 stone, forgive me if I'm wrong there was nothing in the sales patter about weight of persons in the car which could cause a safety problem. We have had no end of trouble with the dealers and Peugeot who just keep passing the buck to one and other. Does anyone else have similar problems. The seats still move "shooting forward", jam, and lock when ever they feel like it, more often than not.