We have the 2007 V8 with every option available.
Can't say enough about how much we love to own and drive it!
Where else can you get a "car" (remember it is a unibody) that tows nearly anything a person could want to tow. It weighs about the same as a Suburban or Tahoe, so the ride and handling are superb. The factory roof rails run the entire length of the roof which makes mounting boxes or a bike rack a breeze.
We bought a certified used Highlander prior to the Touareg and only owned it for two weeks before we forced the dealer to buy it back. The engine had what Toyota considers "normal" piston slap and the drivetrain whined like it was extremely worn out, also considered "normal".
We're thrilled with Touareg. It drives like a car and is solid - nothing is loose anywhere. The doors and sunroof shut tightly and very it is quiet inside. That seems to be the VW trademark, lately. This truck is really well made. Its power delivery is smooth, but it's a heavy car. So be patient. I've had three Japanese cars - a Nissan, Infiniti, and a Lexus and four German cars - a BMW, Mercedes-Benz and VW. Personally, I find German cars to be more sturdy, functional and practical. Some might say Japanese cars are more refined, sophisticated...etc. The Touareg exemplifies all these qualities without losing its German character.
Unlike others here, my experience has been very positive over 60,000 miles. This is a late 2007 with the FSI engine. Mileage is 16 to 18 on highway at higher than posted speeds. Issues - generally minor -- have been quickly resolved at various service locations. Reliability has been excellent -- no issues noted. Handles superbly on the road (equipped with 19" wheels and premium tires/air suspension). Heavy solid vehicle which does lead to limited tire life on secondary roads -- generally 16,000 to 18,000 miles. Brakes are excellent but require more frequency replacement than typical. Quiet and luxury feel.
I love my new Touareg! I don't think that I've ever said that about any other car I've owned. My last two new cars were Volvos that I had both under a year (ouch)! The Touareg has every little gadget and more. It has all the features that my husbands 06' BMW 750Li, not to mention that the Touareg has a backup camera and his doesn't! The V8 Touareg is fun to drive especially going up our curvy mountain road in Sports Mode! This SUV is not only fun to drive but has great curb appeal! I have had quite a few people stop and ask me about my Touareg and love telling them about. I hope that when I turn it at the end of the lease that VW will continue to make the Touareg as good or better!