In previous years, Subaru's suggestion that with the latest Legacy it's targeting the "leading prestige European marques" would have seemed like PR spin from Cloud Cuckoo Land. But since the 2004 model range offers smoothed-out exterior styling, greatly improved interior presentation, a more powerful top-of-the-range engine and even more precise handling, you'd better believe it.Subaru may not be the class of the field when it comes to premium badge recognition, but the lighter-weight 2004 model, which goes on sale this month, sits even more four-square on the road thanks to its wider track, modified suspension and lowered powertrain.Together with revisions to the steering and brakes, lower front and rear roll centres, and the advantage of four-wheel drive, all this means that the top-rated 3.0R feels to have similarly-priced European saloons and estates beaten hands-down for handling. I can't think of any immediate competitors at prices in the mid-£20,000 to £30,000 range which could match them for poise and traction on winding or hilly roads.Our launch review gave details of the improved interior, and a general mention of the new three-litre flat-six engine. This is a seriously uprated version of the H6-3.0 engine introduced in the previous Outback range. Subaru has changed the pistons and crankshaft, revised the exhaust system and fitted active valve control plus variable valve lift.The result is a substantial 35bhp boost in power output and an extra 11lb/ft of torque. That means 241bhp and 219lb/ft of torque at 4200rpm, and you can certainly feel the difference in lift-off and rolling acceleration.Our test car was a 3.0Rn, with "n" for satellite navigation. Without the satnav the 3.0R costs £1500 less, but as mentioned in our launch report the navigation system isn't just handy if you regularly have to find your way through unfamiliar cities. On winding and undulating roads, at a carefully chosen scale, it's almost like a non-speaking version of Phil Mills calling the notes to Petter Solberg in their World Championship-winning Subaru Impreza."Silent Phil" does not, of course, give advance warning of livestock on the road round a blind bend or a tractor turning right across your bows beyond the next brow; so don't rely on him 100%.You can rely to an impressive extent, though, on the car's precise turn-in, as well as its noticeable all-wheel traction on corners and climbs, and its ability to sweep through S-bends on a closely held line.The three-litre models are fitted as standard with a Vehicle Dynamics Control system which, as Subaru says, can detect side-slip and sudden swerves: "The result of all this data is for the engine power to be reduced and braking applied to whatever wheel can best help the driver escape a collision."Well, b*llsh*t to that. It reminds me of the second case in the old saying: "A racing driver goes into a corner slow and comes out fast; a rally driver goes into a corner fast and comes out anywhere."The three-litre Legacy is the best-balanced car in its class. Driven briskly, it's stable and precise on corners, and there's no need to throw it about rather than hold it on line. Out on the open road, anybody who feels the VDC cutting in - unless during an emergency attempt to miss the tractor - ought to blush at being so ham-handed.With the 3.0R and Rn you get automatic transmission as standard, but having to do without a manual box is no hardship. One of those would trim the acceleration times still further, but the auto also has a sequential option, and the short push-pull movements fit in well with the overall experience of driving this very enjoyable sporting saloon. Engine 3000cc, 6 cylinders Power 241bhp Fuel/CO2 29.4mpg / 229g/km Acceleration 0-60mph: 7.9 seconds Top speed 147mph Price £26,000 Release date 15/05/2010