Inside the passenger wheel arch, mainly on S1 cars, as S2 cars had a slightly better cover, though its NOT immune, theres a small square Grommet that covers a Cill Internal Inpection Hole!
This grommet wears away I suspect from constant water battering and crap, resulting in the hole being opened up to the elements.
Here's the hole with a new grommet re fitted, still available from the dealer...

CHECK YOURS NOW! Because if its left open and you do nothing about it, you WILL HAVE a welding job to attend to now or in the near future!!
And you cannot see from standing up where it rots through. Its NOT the outer sill that cops it, its behind the Lip..

(To ID properly, Fuel tank on left of pic, outer cill on right, front mount at rear subframe at bottom.. )
You NEED to get the car up on top setting and look behind the lip, Id welded it up before I took the damm picture of the offending rot!
Or simply feel and press hard on the flat area behind the lip at the rear...
It doesn't happen so much on the drivers side as the Fuel pipes run past the hole on that side.