What is Audi planning for the S3 and RS3?

This morning, a story appeared on a Volkswagen fan site about the 2007 Audi RS3. According to the report, which cites the U.K.'s AutoCar magazine, Volkswagen has "confirmed" plans for the the 350 horsepower Audi RS3 project. Unfortunately, the report was published nearly two years ago, in the magazine's April 2004 issue. It's now 2006, and Audi's plans aren't entirely clear. What we do know is than a 272 hp Audi S3 is in the works, and will debut very soon. In all likelihood, it will be unveiled later this month at the Geneva Motor Show. As for the RS3, we don't expect it any time soon, but it remains a possibility in the future.