I don't believe this is true. I have had nagging electrical issues, engine noise, rattles all over the place, clutch issues, both front wheel bearings replaced at only 30K kms, on my 4th windshield now, drivers door lock problems, and have had the techs mention to me themselves that they have seen lots of strange problems on MINIs and there are build quality issues especially on the first few model years. It is the luck of the draw. Mine is finally problem free after 4 1/2 years. (problems went undiagnosed for years, and finally they were magically found once my warranty ran out....at my expense).
I have heard much worse stories than my own also.
I agree though, if you are going to get one go for a 2005+
Other than the fun factor, I would have trouble recommending a MINI to anyone.
-end rant.