While the interior is superb, ride quality and handling prowess are among the RX 300's best features. Underway, the RX 300 is smooth and whisper quiet, though the little sunroof spoiler generates quite a bit of wind noise when the sunroof is open. Stable in high-speed sweeping turns, the RX 300 also seems at home on winding mountain roads, dispatching them as deftly as a sedan. There's none of the wallowing and turn-in stability compromises found on most truck-based SUVs. Plus, this year's addition of Vehicle Skid Control - which detects when either the front or rear wheels lose traction and automatically applies power or brakes to the individual wheels - add a measurable improvement to the RX 300's driving abilities.

With 7.7 inches of ground clearance, the RX 300 easily forded a roadside ditch and berm. But its crisp, predictable handling on loose surfaces is what we liked best. The RX 300 can be driven quite quickly over gravel and dirt roads. Bumps do not upset the handling balance when driving hard through loose corners. Pushed beyond its limit, the front tires wash out predictably and the rear end never, ever steps out. All of this instills confidence while driving on loose surfaces. It's also a benefit when quickly rounding a slippery corner that tightens up, only to have a deer dart out onto the road. In this situation, the RX 300 performs precisely and predictably.

The available four-wheel-drive system operates full time and requires no action from the driver. It splits engine torque equally between the front and rear wheels on the highway. When things get slippery a viscous limited-slip center differential directs torque to the wheels with the most traction. An optional limited-slip rear differential aids traction further and enhances control. Lexus developed a four-speed electronically controlled automatic transmission with an integrated transfer case to work with the system. No low-range gear set is available, however. This is not really an off-road vehicle; it's an off-highway vehicle.

The front-drive model is well worth considering for those who live in the Sunbelt because it handles beat up city streets and potholes better than many sedans. Being lighter, it is a bit quicker than the four-wheel-drive model and electronic traction control is available to aid control on slippery surfaces. Still, it seems a shame to pass on the RX 300's four-wheel-drive system because it increases stability in the rain and improves driver control in emergency maneuvers - even on dry, sunny days.

Ride quality on paved roads is silky and controlled. Big bumps on unpaved roads are well damped. RX 300 does not ride quite as well on rough roads as the larger, more expensive, more off-road-oriented Lexus LX 470. Washboard surfaces generated some vibration.

Steering is precise and direct, allowing smooth cornering lines and stable high-speed cruising. Bridgestone Dueler H/T tires are quiet on the highway and provide good grip on and off road. Stiff, light-truck sidewalls give them good protection for light off-pavement use. Overall, they are a good choice. Slightly more aggressive tires would be beneficial for anyone who frequently drives on unpaved roads by reducing braking distances and providing better grip in slippery corners.

The V6 engine is silky smooth and offers excellent around-town and highway performance. It accelerates briskly from a standstill. Passing performance at higher speeds is not its strongest suit, however, and it bogs a bit when upshifting from second to third gear. The 3.0-liter, all-aluminum V6 delivers 220 horsepower and 222 foot-pounds of torque. It's a sophisticated unit with four cams, 24 valves, continuously variable valve timing, a three-stage variable intake system and a two-way bypass exhaust system. EPA rates 2WD models at 19/24 mpg, 4WD models at 18/22; Lexus recommends 92-octane (premium) fuel for optimal performance, but you can use 87-octane.

Braking is smooth and consistent, though we found the pedal a bit soft. Antilock brakes enhance control by allowing the driver to brake and steer away from hazards without losing control. Come around a corner, panic, slam on the brakes, and the RX 300 steers and stops without unwanted drama. Lexus has added a Brake Assist feature as standard equipment for 2001. Basically, this is designed to determine if the driver is attempting emergency braking and, if the driver has not stepped hard enough on the brake pedal to engage the ABS, the system supplements the applied braking power.