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Between those two I'd always go for the S4. But then again I've owned three of them in the past two years.
I had an 02 S4, an 04, and an 05. All amazing cars, all very fun, and super luxurious. I have friends that liked them so much they traded in their cars to get S4's. Gas mileage was very poor though, especially with the V8. I averaged around 12 MPG with both the 04 and the 05. On the plus side I never had any issues with any Audi, and I've owned quite a few.
Never owned a 330, but I've owned an 05 M3 and an 05 Z4, and I must say that both cars are boring, overly hyped, and over priced. After the initial happiness of owning a performance BMW went away, the cars just didn't deliver.
If you are definitely going the sedan route there is no better car out there than the S4. It performs amazing in all weather, feels fast in any gear, handles and brakes well, and most importantly (for a lux sedan) drives like a civilized ultra-luxury sedan when you are just cruising.
I'll also add that I haven't found anything that delivers the same feel and experience of driving a Porsche, but if you could translate that experience to a sport sedan the S4 so so close.
Hope that helps!
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