Handling is very balanced. Dive into a corner with too much speed and the Legacy understeers mildly; lift off the throttle and it transitions into mild oversteer. That makes it easy to drive, even at the limit of the tires. And that's good news if you're ever called upon for an evasive maneuver or suddenly realize there's a patch of ice in that shaded corner. Anti-lock disc brakes and the all-wheel-drive system help the driver avoid accidents by managing grip while the driver steers around obstacles.

Subaru's all-wheel-drive system is one of the best in the business and it ensures power is distributed to all four wheels. This makes the car easier to control on dry pavement and is especially helpful when the road surface is slippery. There's lots of grip under hard acceleration in the wet and the Legacy feels really stable at speed on wet roads. Unlike part-time four-wheel-drive systems designed for off-road use, Subaru's system continuously redirects power to the tires with the best grip, improving driver control. Also unlike part-time four-wheel-drive systems, Subaru's all-wheel-drive adds little weight.

Actually, Subaru builds three different all-wheel-drive systems. Manual-transmission models rely on a viscous coupling, a kind of speed-sensitive automatic clutch, to limit wheel slip at either end of the car. The system is purely mechanical, and nominally distributes driving torque 50/50, front/rear. Active All-Wheel Drive, standard with automatic transmissions, replaces the viscous coupling with an electronically managed multi-disc clutch. Torque distribution remains 50/50, but Subaru claims this system can respond more quickly to changing conditions. The Legacy GT automatic and all VDC models come with Variable Torque Distribution, which combines the electronically managed center clutch with a planetary gear that splits torque 45/55 front/rear, for a sportier feel. VDC models combine Variable Torque Distribution with electronic traction control. Additional electronic sensors monitor the position of the throttle and steering wheel, as well as the vehicle's yaw rate and the individual speed of each wheel. The traction-control function can be turned off with a switch, a feature that may be useful in deep snow or mud.

Subaru claims that VDC can anticipate a loss of traction before it happens. This is not to say that you won't ever get into trouble if you encounter bad road conditions or exercise poor judgment. But it is reassuring to know that the Subaru system is there to help you maintain control when foul weather or ragged roads make for rough sledding. Subaru's technology also helps make driving in adverse weather much easier, less stressful and more enjoyable.

The standard four-cylinder engine produces 165 horsepower, which is more than the four-cylinder engines for the newest Honda Accord and Toyota Camry. More important, the Subaru engine generates a generous 166 pounds-feet of torque, the force that propels you away from intersections and up steep grades. This gives it excellent acceleration performance. Stand on the gas and Subaru's four-cylinder sounds boomy at first, but that quickly gives way to an enthusiastic growl as it reaches higher rpm.

The manual transmission is smooth and pleasant to use. It helps get the most out of the engine. A well-designed gated lever on the floor controls the optional automatic transmission. It's a straight shot from Drive to Third and back, making it easy to shift between them. Move it over into a dogleg to downshift to Second and First. Who needs a Tiptronic?

The 3.0-liter horizontally opposed six-cylinder engine produces 212 horsepower and 210 pounds-feet of torque. The power boost from the bigger motor is not readily apparent except in high-demand situations, like passing. And the power peaks at 6000 rpm, so when you kick down the automatic transmission and step out to pass you're not out there for long. By the EPA's reckoning, fuel economy measures 19/26 mpg city/highway for the six-cylinder VDC, nearly as good as for the four-cylinder models. (Our test drive netted 22 miles per gallon in a mix of city and country driving.)

Outback's handling is more car-like than truck-like, because the Outback is essentially a car. With more than 7 inches of ground clearance, the Outback doesn't corner like a sports car but it is far more nimble than an SUV. For 2003, Subaru has added internal rebound springs to the front struts, which promise to reduce body roll and improve overall stability. Outback delivers a comfortable ride quality, too.