Re: I20 Rattling and A/C issues have been resolved yet?
Regarding alternatives if you are looking at the premium hatches then you can try Punto 90HP. If you believe in Skoda dealerships and Nissan you can check out Micra and Fabia too. I would love to suggest you Figo but you have a very good budget and if you buy Figo you will be missing many of the features coming in Punto or i20. If you are not a feature freak then you can include Figo also in your list too , one gem of an engine with good FE and nice handling.
If you are looking at sedans i think you can get fully loaded versions of only Manza and Dzire.
If you can elaborate your requirements, we would be able to help you out better.
With a budget of 8 lacs, you have 2 options of Sedan, Tata Manza and Maruti Suzuki DZire, Mahindra Verito. Even the Ford Fiesta Classic falls in the similar price range, but i am not sure whether the on road price (of Top end Version) will fit in the budget. If you are okay with the looks of Verito, then do give it an eye. It has one great diesel mill under the hood.