I can't find my Mk2 specification guide that is on here somewhere...
However, for that budget you are looking at a Mk2 rather than the Mk2b (otherwise known as 'guppy').
The specs for 1.2 models are:
1.2 8v 60bhp 5 speed manual
'basic' 3/5dr
Active 3/5dr
Go 3dr
Active Sport 3dr
ELX 3/5dr
Dynamic 3/5dr
1.2 16v 80bhp 5 speed manual
ELX 3/5dr
Dynamic 3/5dr
HLX 5dr
Eleganza 5dr
1.2 16v 80bhp speedgear (CVT automatic with 6 pre-selected gears)
ELX 5dr
Dymanic 5dr
1.2 16v 6 speed manual
Sporting 3dr
1.2 16v 80bhp speedgear (CVT automatic with 7 pre-selected gears)
Sporting 3dr
As for which is what on the spec front...
The basic has twin airbags (passengers only on models built after June 2000), Central locking (post June 2000) electric front windows (post June 2000), Power steering, Height and reach adjustable wheel, Height adjustable drivers seat, 4 speaker stereo radio cassette.
The basic was replaced by the Active in May 2002 - you can easily afford an Active. This adds body colour bumpers, trip computer, rev counter to the above spec.
The Go and Active Sport were based on the basic/ Active and added sports interior trim, silver centre console, 60/40 split rear seat always had the rev counter, body colour bumpers and trip computer. Later Active Sport models got 14" alloys too.
ELX was the next model from the basic and had electric windows, central locking, Electric sunroof (16v only), rear headrests, 60/40 split rear seat, rev counter, body colour bumpers and trip computer. From June 2000 they also got ABS and a passengers airbag.
Like the basic, the ELX was replaced in May 2002, this time by the Dynamic. The Dynamic gets all the ELX spec plus a 3-point centre rear seatbelt (later deleted from the 3dr model), C.d. player, remote locking and front fog lamps.
Top of the 5dr tree was the HLX. This added Air Conditioning (but no sunroof), Remote locking, 14" alloy wheels, front fog lamps, velour trim, variable intermittent wipers and a centre rear seatbelt to the ELX spec. Like the ELX it gained ABS and a passengers airbag in June 2000.
Like the others, the HLX was replaced in May 2002 with the Eleganza; this added Side and curtain airbags and a C.d. player.
The Sporting had all the guff from the ELX 16v plus 15" alloys, body kit, firmer damper and spring rates, Remote locking, front fog lamps, sports trim, sports seats. Like the ELX it got ABS and a passengers airbag from June 2000. The Sporting gained a C.d. player in May 2002.
There were various options on the models, which is why spec varies slightly (the most common was replacing the sunroof on Sporting and ELX 16v models with Air Conditioning) but this is generally how they are.
I won't explain how the Mk2b Dynamic 8v lost ABS but gained air con today
Your budget will get a 2001/ early 2002 Sporting or a 2003 Dynamic 16v. If you can find the Eleganza, they are well worth a few hundred extra
As for the Pug 206, drive them both and see what you think. The 206 is fine but the 1.1 engine has little go (like the 8v Punto) and the 1.4 is a bit of a slogger. The main problem with the 206 is the worst ever Right Hand Drive Conversion - not only are the wipers the wrong way round, but the driving position is a disgrace...