The new 2009 Corolla has been compared in a comparison test with the top 2 selling small cars for 2007 and 2008. The Honda Civic and Mazda 3. And the Toyota lost. They said it had the worst handling, power, gas mileage, space, looks, features, and quality.
The Toyota is much bigger than the Versa sedan since it competes with the Nissan Sentra and the Versa competes with the Toyota Yaris.
I also read about people having problems with the new Corolla. The older design was a better car.
I would go with the Nissan. It has a nicer interior, better on gas, and it is cheaper.