The S60 is front-wheel drive, and torque steer rears its head, especially with the more powerful T5. Stand on the gas and you'll feel a tug on the steering wheel. It's really no big deal, though, and you get used to it. Still, the S60 definitely engages the driver, because you have to pay attention to the steering when you're driving hard. But it's extremely steady at speed.

The T5 produces prodigious thrust from its high-pressure turbocharger. In the past, we've found we needed to keep the revs up for good response, but it gets an increase in horsepower and torque for 2005. Volvo's turbocharged engines get great gas mileage. The T5 rates 21/27 mpg with the five-speed manual transmission.

We found the brakes were on the soft side, but the ABS was very smooth. We didn't feel thrown forward in the seat under hard braking, as we have with other sports sedans, including the BMW 330i.

The steering is slightly heavier in the S60 AWD, because of the weight of the all-wheel-drive system. It also has a more on-center feel. The ride is firmer on the all-wheel-drive version, which has stiffer shocks to handle the increased weight. We think it's a worthwhile tradeoff to get the AWD's improved traction and handling in the rain and snow.

We drove over gravel roads in the S60 AWD, and found directional stability on loose surfaces excellent. Power in the S60 AWD is distributed between the front and rear wheels using a wet multi-plate clutch controlled by electronics according to driving conditions. With a steady throttle on dry pavement, about 95 percent of the power is transmitted to the front wheels; but up to 70 percent can go to the rear wheels when required. The balance changes instantaneously. Of course other automakers say that, too, but the difference in Volvo's Active-On-Demand system is the degree of instantaneous-ness. When one wheel slips 15 degrees, far less than any human can detect, the balance of power shifts away from that wheel, thus replacing the slip with grip. In other words, it's just more secure and better stuck to the road when the weather gets nasty.

The S60R is another animal altogether. It was designed and developed by Hans Nilsson, who's been a Volvo engineer for 26 years and races his own Volvo in 24-hour endurance races. Volvo let him alone to do what he knows how to do, and he did such a bang-up job they now call him the Czar of R. We tested the S60R on the road course at Las Vegas Motor Speedway, and it was a perfect day in a perfect car. The balance is brilliant, the engine train-like, the gearbox bulletproof and the brakes bomb-proof.

The suspension is what's really special. Volvo says it's the most advanced active chassis on the market. A button on the dash allows three settings, Comfort, Sport and Advanced, which mostly address the shock stiffness and engine management. There is a distinct difference between the three settings, and each performs exactly as defined by the buttons. No more compromises with the ride of your high-performance car. You have a suspension that's soft when you want it to be, and stiff when you need it to be. Up to 500 times a second, sensors measure things like longitudinal, lateral and vertical acceleration of the car relative to road conditions and driving actions, and use this information to constantly adjust the ride. But the real leap with this technology is that sensors from the suspension, wheels, throttle, steering and brakes all communicate with each other before the various instantaneous settings are determined, including stability and traction control.