Thanks for the help guys. Reliability is my #1 concern about the Rabbit. It looked and drove great, but I'm just graduating and starting out a career, so I have no idea how long I'll be sticking with the same car.
I'll probably go with the XRS, since the Rabbit's reliability is a question mark. On other forums, people generally seem to say "oh yeah, its great! (minus a few small problems that were fixed under warranty)" Makes me wonder about what problems will crop up once they're out of warranty!
The XRS was a blast to drive though, and I really liked it; though I have to admit the Rabbit did have a higher quality look and feel to it. Oh well, trade offs!