Had an Audi that was about to bite the dust - thing was an absolute money pit. Fortunately, our other "family" car was a Lexus RX and we've had nothing but a stellar Lexus ownership experience, so when I decided to buy another AWD car, the IS 250 AWD had to be on the list. The car has not disappointed. Handles beautifully, looks good, plush inside and best of all it's a Lexus, so you know build quality and ownership experience will be top notch. Get the nav package (w/Bluetooth and rearview camera) - worth every penny.
The usual complaints here: rear seats a bit cramped; include the '08 model in the TSIB for alternative brake pads to replace those dust-happy high friction ones that come standard!! (Don't get it: Lexus issues a TSIB for the brake pads on the '06-'07 model, then uses the same dusty pad on the '08?!)