For a long time, the Legacy suffered from nondescript styling which seemed almost shy of admitting to the excellent qualities which lay underneath. That changed markedly when the latest-generation model was introduced for the 2004 model year, and three years on Subaru has improved things still further in what it describes as "an extensive but subtle facelift".There is no change to the basic line-up, which includes two-, 2.5- and three-litre engines and saloon, Sports Tourer (estate) and Outback (estate with more ground clearance) body styles. The most exciting cars are those with the 241bhp three-litre engine and Spec.B trim level, one of which we're testing here. There's no Outback version of the Spec.B, and of the remaining saloon and Sports Tourer options we've picked the latter since Subaru is convinced, from previous experience, that it will be the better seller.This suggests that Legacy owners favour practicality. The saloon can carry 433 litres of luggage, but the Sports Tourer manages 459 litres even with all seats in place, and up to 1628 litres with a 1.97-metre load length if the rear seats are folded down.These figures apply to any Legacy, regardless of engine. The added appeal of the 3.0 is of course its extra power, plus - in a new twist - the addition of a device called SI-Drive, which gives drivers the choice of three modes called Intelligent, Sport and Sport Sharp.None of these affect what the engine itself does. In each mode full power is available, as is the increased low-speed torque Subaru has introduced to improve performance and driveability even though the maximum power figure has not been altered.In Intelligent mode, the Legacy's throttle is much less sensitive than normal, so you can push the pedal quite far down without getting much in the way of acceleration. An added feature of SI-Drive in automatic models, such as the one tested here, is that the gearbox is also affected by Intelligent mode, changing up into the next available gear at the earliest opportunity.The effect, of course, is to promote better fuel economy. You would not use this mode if you wanted to get anywhere in a hurry, but it makes the car more relaxing when you're puttering along in city traffic or wafting gently down a motorway.Sport mode involves more immediate throttle response and a greater readiness to hang on to lower gears during press-on motoring. The ultimate setting is Sport Sharp, which Subaru says offers a still more hair-trigger throttle (though the difference is not great and you would have to be paying particular attention to notice it). In this mode the automatic transmission will hold on to a gear until the revlimiter persuades it to change.I don't think there's much call for that in real-world driving, and when I tried the car in Sport Sharp mode I preferred to take control of the gears myself using the paddle shifts mounted behind the steering wheel. These have a small edge to them which looks great if you contort yourself into such a position that you can see it, but which feels disappointingly cheap to the touch.On the other hand, the paddles are tall, so you can use them when your hands are in the ten-to-two position on the wheel (not the case with every other car using a system like this), and since they're not part of the wheel itself and don't move with it you always know where they are.The different modes work well because they allow you to turn the Legacy into the car you want it to be as you change from one set of driving conditions to another. When those conditions allow you to use the Spec.B's performance, another familiar Subaru feature comes into play; the typical insistence on soft but well-damped suspension and the low centre of gravity provided by the flat-six engine help make the a dazzling handler which deals with corners with an ease that can hardly be matched by anything else on the market.In the right circumstances - basically anything involving a road with bends in it - driving this car is a wonderful experience, though it could be better still. Subaru has softened the Legacy's rear suspension further to improve the ride comfort, but the suspension isn't the issue.The issue, in the case of the Spec.B at least, is the 215/45 tyres, which provide splendid grip but also transmit more information about the road surface into the cabin than you really needed to know. Higher-profile tyres on smaller wheels would improve matters greatly, though I'd be the first to admit that they would detract from the Spec.B's splendidly purposeful appearance.Another feature of the new Legacy is that its steering wheel is adjustable not only for height but also (for the first time in any Subaru) for height. And about time too - how did it take so long to work out that that was a good idea? More trivially, the interior revisions include a dual-zone climate control system, so the front passengers can choose their own preferred temperatures, and there are rear-seat outlets too.I have enjoyed the Legacy in every form I have driven it over the years, but this latest one is the best yet. The really good news is that if your budget doesn't extend to the near-£30,000 asked for the Spec.B Sports Tourer, and if you don't mind doing without SI-Drive, the same basic qualities are also available further down the range. Engine 3000cc, 4 cylinders Power 241bhp Fuel/CO2 28.8mpg / 161g/km Acceleration 0-62mph: 8.0 seconds Top speed 147mph Price £29,895 Details correct at publication date