You will never get sick of this car!

I have been driving my 2000 Prelude ('98 - '02 are all virtually identical) for a year now, and what a year it has been! I still look forward to getting into it every day and enjoying it's dead accurate steering, the 'hold-you-tight' seats, the no nonsense does what you tell it responsiveness, the just-right feedback through the steering wheel and suspension.
** Who this car is for **
This is a drivers car. Honda engineers put a premium on performance with this car. You don't pay for - nor are they offered - things like heated memory mirrors & seats, wiper de-icers, trip computers, compass temperature displays, auto temp control, traction control, or On Star. Every penny goes to performance, though not to the extreme of the Integra Type R, which further strips A/C and sound deadening material among other things for the sake of performance. This car is for those who care about good, reliable, no nonsense performance but can't afford a BMW M3 and are willing to sacrifice some of the extras. Indeed, the M3 is probably the next car on the price ladder that performs as well as the Prelude. If you're considering the Prelude, you might also consider the Acura RSX. Judging by the numbers, it's a Prelude with a different skin and a sixth gear. I wish my Prelude had six speeds.
** Who this car is not for **
People over six feet may not be comfortable in the Prelude. People over five feet won't be comfortable in the back seat. If you're looking for a car with a lot of goodies like 4WD, traction control, navigation system, memory everything, heated seats etc. you'll have to look at something else. They are not offered on the Prelude.
If you're the practical type who wants nothing more from a car than to get from point A to point B, you could find something cheaper. This car is also not easy to get into and out of. It sits low to the ground and the seats are close to the floor.
**Other observations**
Even though it goes from 0 - 60 in seven seconds flat, it's kind of slow from a dead stop. At about 4500 RPMs the variable valve lift kicks in and you feel a rush of acceleration. I think this is Honda's way of giving us the choice of driving economically, that is with higher gas mileage, or, more spritely by keeping the revs high. You can keep the revs in the 'VTEC' zone by shifting at the redline.
The dealer sent my Prelude out to have leather installed and it's already starting to wear.
I did (gasp!) have a problem with my car. I had some noise from the rear strut damper in cold weather. It was fixed after a few trips to the dealer.
I didn't get the Active Torque Transfer option, this car drives fine without it.

**Update 10/05**
It's been five years and 37,000 miles since my initial manic nirvana owning this car. As might be expected, some of the luster has dulled. Not enough, though, to raise any regrets. If I had it to do over, or if I was looking at used cars, I would not hesitate to buy a Prelude.

Problems
I didn't notice right away because I stored the car for the first two winters. In cold weather the rear struts make a clunking noise. The level of this noise ranges between subtle and obnoxious depending on the temperature. After several trips to the dealer (two should have been enough since there was a service bulletin addressing the issue) some kind of shims were replaced or added. This fixed the problem until it was out of it's 36 month warranty. If you're going to own a new Honda, don't expect the Lexus treatment from the dealer or the manufacturer. As of now, I'm simply putting up with it.

Another noise that I am living with is a one or two second hum from (I think) the power steering pump immediately after start up. There is also a service bulletin for this, but the dealer couldn't duplicate the condition, so he wouldn't perform the fix. In case you're wondering, a list of service bulletins is available at cars.com.

A piece of isolating material worked loose from the A-pillar trim. It was fixed in one trip.

Yet another noise form the (gasp!) transmission. I found out from a Prelude owners forum (http://www.hpoa.org) that it was common for the throwout bearing to make this noise when engaging the clutch. The car was out of warranty by this time, but only had around 24,000 miles. To replace the bearing requires a complete disassembly of the clutch - no small task. I had a mechanic friend put in a new Honda bearing and all is well. To be fair, I should say that the old bearing did not fail. There was no slop in it's movement and it would be hard to tell it from a new part. It would have most likely lasted the life of the clutch, albeit noisily.

Something else I learned from the forum; the automatic transmission in this car had some major and expensive problems requiring a complete overhaul with extensive modifications or a replacement with a modified transmission. There were also reports of Honda and it's dealers making it extremely difficult for owners to get the problem fixed, even if it was under warranty. Why anybody would want an automatic in this car is a mystery, but if you are looking for a '98 - '01 Prelude, avoid the auto trans at all cost.

One more minor complaint; this applies to all cars with finished, alloy wheels. They are a pain to maintain and they are easily battered by stones and scratched by curbs, car washes, balancing weights, and tire-mounting equipment. Neither is winter very kind to them. Winter wheels and tires are highly recommended.

Praises
In 37,000 miles there has been no degradation that I can detect in the handling and performance of this car. In fact, since I put a new set of tires on, it may even be better. It has needed nothing except the above mentioned items. No major failures, leaks or even maintenance items like brake pads, hoses, rotors, alternator, starter, fuel pump or fuel injectors. These are often considered "normal wear" items that need replacement on many lesser cars by the time the warranty is up.

After five years, I still enjoy driving this car every day. Even after driving new rental cars or those of friends, I am exceedingly glad to slip back into my Prelude. It still draws more than it's share of long looks on the road. One on my ten-year-old son's baseball team pointed out the car to my son with glowing admiration. When he informed him that it belonged to his old man, his response was "Whoa! You get to ride in that?!" I was privileged to hear those words, and the grin on my face stretched from here to Hawaii.

Gas mileage is averaging better than 23 mpg in mixed driving during warm weather months. In the winter it drops to about 20 mpg (mixed). On the freeway it is nearly 30.

With proper care and feeding (of the car and me!), I expect to drive this car another ten or fifteen years, or until all of the oil runs out of Saudi Arabia, whichever comes first.

Happy driving!