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My dad has an 05 Sante Fe. He's been extremely happy with it so far. It has lots of room and handles really well. I've driven it a few times and my only thing is the gas pedal acceleration differs from my own car (an Xterra) so that was a bit to get used to.
I have also heard bad things about the VW, esp with the electrical systems. Mostly, if you're paying that much for a car, it shouldn't break down. They may have fixed it recently and also i'm not familiar with the diesel versions. One person i know even went so far as to sell her car after less than a year b/c of all the probems.
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