People familiar with BMW interiors will immediately feel at home in the X3 and will appreciate the changes made for 2007 for a more refined ambience. Controls are where they should be and feel the way they should, with the proper directional movement, resistance and detents. Instruments are easy to read at a glance and communicate the proper and necessary information.

For 2007, the revised interior uses new materials that are meant to upgrade the look and feel, and for the most part the effort paid off. In a few areas, however, the X3's level of materials and finish quality isn't quite in the same league as its more expensive big brother.

There's much to like, including the new three-spoke steering wheel, the more finely grained dashboard material, the new materials for both the instrument panel and door panels, the new look around the gauge cluster with the instrument hood integrated into the dash, and the door panels and armrests wrapped in either leather or leatherette.

The display for the navigation system is one of the most thoughtfully positioned of the lot, rotating up out of the top center of the dash, gray instead of black, so it's visible to driver and navigator but nestled unobtrusively halfway down in the recess where it stows when not in use.

Passengers will climb in over aluminum doorsill trim with the BMW logo and will find refined interior trim and materials. Dark ash wood trim is now standard; gray poplar or light natural poplar, which we especially like, are no-cost options.

The front seats are supportive and comfortably bolstered. The standard seats are more comfortable than the Sport seats and quite adequately restrain occupants' posteriors when the road begins to wind. Seatbelts feel right, properly tensioned. Ranges of seat adjustment are extensive, to the point a six-footer can enjoy major amounts of headroom and actually put the steering wheel and forward footwell well out of reach; at these extremes, however, rear-seat legroom is seriously diminished.

In terms of roominess, the X3's interior compares favorably with its most likely direct competition, the Lexus RX 330 and Infiniti FX35, giving up an inch or so here and gaining the same there. On the downside, the X3's rear seat is quite firm and virtually flat, like a church pew, where the X5 and the others offer more form fit and comfort. The X3's rear center head restraint is fixed, offering no vertical adjustment.

Cargo area, at 71 cubic feet, is impressive, exceeding the X5's by 10 cubic feet with the rear seats folded, and slotting in between the RX 330's 84.7 cubic feet and the FX35's 64.5. Caesar the 170-pound mastiff was happy here, with the second row of seats flipped down.

Storage areas are numerous and flexible, many fitted with netting that stretches to accommodate odd shapes and medium-sized water bottles. The mesh nets in the lower front doors, though, have been replaced by dual storage bins for better small-item storage. Rear-door map pockets forfeit several square inches to the Europeans' unabated addiction to ash trays.

So much for the tape measure. Where the X3 disappoints is in the intangible and tactile, how the interior looks and feels. Textures and materials have been improved, including a higher quality of optional leather, but there's still no mistaking the X3 for one of BMW's luxury sedans. There are two front cup holders, but the one mounted on the center console is sized more for soda pop cans than coffee cups or water bottles and looks like an afterthought, something cobbled together and glued in place forward of the armrest/storage bin. The passenger cup holder pops out of the end of the dash by the door, where it gets bumped by knees when the passenger is climbing in or out of the car. Door closings are followed by a hint of a hollow echo, instead of the solid "thunk" we expect of BMWs.