First, there's the engine, at 220 horsepower a major step up in both performance and smoothness from the '06's 160-hp, inline four-cylinder. The new-for-'07, six-speed automatic manages the delivery of that power with much greater finesse.

The package is not perfection, however, as the engine and transmission computer mapping seems focused more on gas mileage than silky gear changes and optimal power delivery. This is most apparent at moderate road speeds in the higher gears and under light loading, when what feels like torque-converter lockup holds the engine at relatively low rpm, producing a low thrumming sound, kind of like the buffeting from when only a single rear side window is open. It also shows up in what's charitably described as languid kickdowns for passing or for merging onto freeways. It's not all negative, though, as the ample torque (204 pound-feet, up 42 lb.-ft. over the '06's torque) does minimize downshifting on upgrades.

The Outlander delivers in fuel economy, too, earning mileage estimates just 1 mpg lower than the '06's four-cylinder and equal to or better than the V6-powered competitors.

Throttle tip-in from a stand-still is a bit anxious, requiring some tempering of the right foot for smooth starts, something we're seeing a lot in compact SUVs nowadays. Also, there's a trace of torque steer, a phenomenon common on front wheel-drive vehicles, where the steering wheel pulls to the right under hard acceleration.

But once underway, the new Outlander handles freeway and even extra-legal speeds with ease. Almost too much ease, as at least initially, careful attention to the speedometer is vital to avoiding roadside discussions with the authorities.

Refinements to the MacPherson strut front suspension have improved the new Outlander's steering response. These include bars bracing the strut towers against the cowl, stronger and lighter components and retuned bushings. The rear suspension, too, has been revised, with, again, lighter and stronger components and new geometry enhancing both straight-line and turning stability. Larger shock absorbers front and rear allow more varied tuning and longer suspension travel for a ride that's both more comfortable and better managed. It has a wider track (the distance between the tires side to side) than the previous models, putting the Outlander in the mainstream of the competition. A wider track means more stability.

The steering rack is more robust and more rigid for better feedback, with emergency maneuvers monitored and managed by electronic skid and traction control, a new, standard feature for 2007. Larger disc brakes have dual-piston calipers in front and single-piston calipers in back for firm pedal feel and sure stopping, backed by standard ABS and EBD.

The four-wheel-drive system is a new design, too, featuring three selections controlled by a single knob mounted in the center console just aft of the shift lever. One setting, the most fuel efficient, is for front-wheel drive. Another setting is 4WD Auto, which apportions power between front and rear wheels as dictated by speed differences between front and rear wheels, but with some power (up 40 percent) always going to the rear wheels for more balanced handling. The third setting is 4WD Lock, which is actually a misnomer, as it doesn't truly lock front/rear power distribution as the term is commonly used. What it does is give the rear wheels preference in power distribution, directing as much as 60 percent their way under full throttle on dry pavement. This is the more fun, more agile setting. It thoroughly suppresses any front-wheel drive contortions yet provides front-wheel traction when needed but all the while responding to power and steering inputs more like a rear-wheel drive. It also adds weight, slightly more than 140 pounds, some of it in the form of unsprung mass, which deadens suspension response somewhat over rippled or broken pavement. Road noise, too, is more evident in the 4WD models.

The Outlander has an aluminum roof, which is 11 pounds lighter than an equivalent steel roof, and this drops the Outlander's center of gravity almost half an inch. A lower center of gravity makes for a vehicle that leans less in corners and is less likely to roll over.

The result is a more confident Outlander for 2007, with crisper turn-in, flatter tracking through curves and less head toss over rutted roads and through deep gutters, but nonetheless a noticeably more cushioned, smoother ride. In sportiness, it may not be in the same league as the '07 Mazda CX-7, but it's easily competitive with the class, and even a slot or two above a couple.