I was in the same situation as you a few weeks ago although I had a more difficult choice. I had always wanted a Renault Sport Clio from when the 172 came out. Expensive insurance has kept me away until now...
I had always agreed that I would spend roughly about £7000. So this year I noticed a dramatic drop in my insurance premium and I naturally decided that now was the time to get the Clio 172.
With a £7000 loan lined up I was shocked/dissapointed to see that you could get a Clio 1*2 for pennies and that most of them were "Modified". I decided to have a look at what 7k could get you in the world of Clio Sport and I was amazed I could get one of the newer models.
After a bit of research between the 172, 182, 197 and the 200, the Cup and the Full Fat models and all the special models in-between, I decided on the a 200 Cup.
I chose the 200 over the rest of them mainly for the looks. So just go with what you like the look of.
I personally think that if a 197 was going to have a problem it would have developed it by now. So if you choose a 197 just make sure it has 'settled in' milage and if it has no problems then just go for it. (Note, I'm not a mechanic so I can't actually fact check any of that.)
Keep me up dated with what you get and why. I'm always interested in reading about why someone chose a particular car over another.
Oh, and of course, welcome!
Bryan