Have had my Outback for 20 months. Absolutely no problems. It's seen the dealership for oil changes and tire rotations only. I'd highly recommend a Subaru to anyone shopping. Very reliable and dependable. This is my sixth Subaru and would be hardpressed not to buy another in the future. BTW, I like the grille on the '07 better than the ones on the '08 models.
AWD is great and the heated seats are wonderful. Rides and handles well for an AWD vehicle.
Stock tires aren't the best in snow; carpeting pulling from door sill; leatherette boot around parking brake is wearing; MPG in cold weather really suffers. All pretty minor stuff.