Up until 2007, the standard Canyon engine has been a 2.8-liter inline-4 rated at 175 horsepower. We've found it worked well with the manual transmission. Acceleration performance was adequate for drivers who favor economy over power. We expect the 2007 2.9-liter engine, with 185 horsepower at 5600 rpm and 190 pound-feet of torque at 2800 to perform better, but not dramatically so.

The 3.7-liter inline-5 develops 242 horsepower and 242 pound-feet of torque for model year 2007, up from 220 and 225 for '06. That might make more of a difference, although it's still a bit weak compared to the optional 4.0-liter V6 engines in the Toyota Tacoma and Nissan Frontier, both of which rate north of 260 pound-feet of torque. Dodge Dakota's top V8 boasts 310 pound-feet of torque now, and will have 320 for '08, but it's also a bigger, heavier truck. In Canyon's defense, we should point out that the inline-5 sustains its peak torque over 90 percent of its rev range, which is important when hauling heavy loads or towing trailers.

The maximum towing load for Canyon with the five-cylinder engine and automatic transmission is 4000 pounds, compared with 6500 for the V6 Tacoma, 6100 for Frontier, and 7150 for the max-V8 Dakota. On the other hand, Canyon runs happily on 87 octane regular; Toyota recommends premium for its V6.

Both Canyon engines were derived from the Vortec 4200 inline-6 used in the Chevy TrailBlazer. GM lopped cylinders off the six to get the five and four. These are modern engines featuring all-aluminum construction, dual overhead camshafts wit four valves per cylinder, variable valve timing, electronic (drive-by-wire) throttle control, and a healthy 10:1 compression ratio.

The four- and five-cylinder engines are not only larger for '07 (thanks to a bigger, 3.76-inch cylinder bore), but greatly improved, with larger intake and exhaust valves, revised cam profiles, new 2M electronic control module, and a number of refinements to reduce noise.

On the road, the Canyon feels solid, with no rattles or squeaks, and the bed doesn't boom or make any other noise. The standard suspension (Z85) is able to work precisely, without interference from chassis flex, resulting in a controlled ride. Canyon is stable and predictable around curves, and a solid stopper when the binders are applied, aided by ABS on loose surfaces. The Canyon is a truck, however, so it doesn't corner and brake like a car. We found it generally tended toward understeer. We found it handled well on washboard roads and didn't bounce around like smaller pickups often do.

We were pleased with the operation of the four-wheel-drive system. There's no doubt when it engages: There's a small clunk when it shifts into four-wheel high (which can be done on the fly) and a bigger clunk when it shifts into four-wheel low (requiring the vehicle be stopped and in neutral). No full-time all-wheel drive is available; this is a truck-style part-time four-wheel-drive system and should not be used on dry pavement. We found it worked well in deep mud.

The Z71 suspension package provides maximum ground clearance, with tires designed for rugged terrain and springs and shocks calibrated for off-road performance without sacrificing too much on-road comfort. We found its ride quality remarkably civilized on the road. The Z71 suspension certainly adds heft to the Canyon, and there's noticeable jiggle from the extra weight of the off-road tires, but not anything like off-road compact pickups of the past. We found it handled rocky hill climbs and rugged terrain well.

We haven't tried the ZQ8 sport suspension in a Canyon, but it rode well in our Chevrolet Colorado. It comes with low-profile, 50-series 18-inch tires, but they don't look particularly sticky. We didn't drive the Colorado ZQ8 in anger, but our impression was that it didn't offer the sports-car handling of the incredible Toyota Tacoma X-Runner. And the low ground clearance means it'll occasionally bottom out.