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When I first wrote about Subaru Forester six years ago, when it was all new for 1998, the little truckette inhabited its own piece of the universe.

A compact wagon mildly set up as an all-wheel-drive mini sport utility vehicle, Forester had only Honda CR-V and Toyota RAV4 as competition, and then not precisely. Now there are scads of compact SUVs as well as station wagons with all-wheel drive.

It rides lower than most SUVs and handles more like a well-executed automobile than a cumbersome truck.

The downside is that it lacks the commanding seating position that many drivers desire in an SUV.

For 2003, Subaru has upgraded the look of the Forester, ditching some of its cuter SUV aspects and turning it into more of a stylish wagon.

With its tall roofline, Forester is more practical and comfortable than most compact cars, including the Impreza on which it’s based. The high ceiling provides the interior with an airy feeling, as well as more space for tall cargo.

Subaru is the expert at putting all-wheel drive under automobiles, and the Forester is no exception. Forester is set up moderately as a practical workhorse, though maybe a bit stiffly sprung for some tastes.

The Subaru drove nicely along a rippled dirt road, staying on track with consistent traction. However, in the test Subaru, rough surfaces created a cacophony of rattles. On paved surfaces at low speeds, the Forester seems to bump heavily over such minor things as cracks and seams.

Manual-transmission Foresters use a full-time all-wheel drive with a viscous coupling in the center differential to parlay torque between the front and rear wheels, as needed.

This is the common setup used in such car-based SUVs as CR-V and RAV4.

With automatic transmission, such as that in the test Forester, the full-time all-wheel drive is an “active” system that uses electronic sensors on the front and rear axle shafts, throttle and transmission to monitor power delivery front to rear. This is a seamless and effective system that allows the Subaru to romp through snow or handle dirt roads and other loose surfaces with sure-footed ease.

This is not, however, a tough four-wheel-drive system like that on a Jeep or truck-based SUV that can be used for backcountry forays on rocky trails.

Subaru’s usual sturdy four-cylinder “boxer” engine powers the Forester. This type of engine, with two cylinders lying flat on either side of the crankshaft and firing horizontally, is inherently smooth and, because of its low center of gravity, improves handling.

Both the base X and upgraded XS models of Forester use the same 2.5-liter, 165-horsepower engine, which provides enough power for merging and hill climbing, though acceleration is fairly mild. Because the Forester weighs only about 3,000 pounds, a featherweight in SUV terms, the power is more than adequate, though it’s hardly in the leag ue of today’s ubiquitous V-6s.

The Forester feels bigger on the inside than its outside dimensions might suggest. The driver and front-seat passenger will find plenty of space, though rear-seat denizens still might find things a bit tight. The dashboard looks sharp with easy-to-read gauges and controls. The dials for climate control were annoyingly hard to use with little lights that are invisible in strong daylight.

The base model Forester X with manual transmission starts at about $21,000 and includes a wealth of standard equipment, including full power features, side-impact air bags, anti-lock brakes, rack-and-pinion steering, power outlets, a 100-watt audio system with CD and, of course, all-wheel drive. The XS version, as tested at about $24,000, adds an upgraded 120-watt audio system, climate control, leather-wrapped steering wheel, four-wheel disc brakes, electronic Brake Force Distribution, 16-inch alloy wheels and some other goodies. The loaded test Forester included a $1,750 premium package, which adds leather upholstery, monotone body coloring and a gigantic sunroof.

All of which seems like a modest price on a nicely turned-out wagon that blends carlike performance with SUV capabilities.

Subaru Forester XS

Vehicle type: Five-passenger, four-door wagon, all-wheel drive.

Base price: $23,695.

Price as tested: $25,970.

Engine: 2.5-liter flat four, 165 horsepower at 5,600 rpm, 166 pounds-feet of torque at 4,000 rpm.

Transmission: Four-speed automatic.

Wheelbase: 99.4 inches.

Curb weight: 3,135 pounds.

EPA mileage: 21 city, 26 highway.

Highs:

Practicality.

Engine smoothness.

Moderate price.

Lows:

Rattles.

Harsh low-speed ride.

Climate-dial woes.