Owned both a Mk 1 and a Mk 2. Have to say that if you're like me (about 6ft 2 tall, and reasonably wide), the Mk 1 was a little cramped. Mk 2 has more interior space. As far as the dogs go, they have no issues with either, getting in the back of the car is still exciting for them, whichever car it is :D :D :D
Both cars were fairly low spec, and the Mk 1 was high mileage (bought in Glastonbury on E-bay, and then driven home in a day). The Mk 2 was a very clean low mileage example.
Both cars deal with the pot holes and bends around north east Scotland with no problem, and you don't need to be going very fast to get some rasp from the engine (soundproofing not high on Subaru agenda) and the feeling that you are making good progress.
If you're in a rural area, have a look at the number of farmers driving the Foresters - they don't part with their money readily - this has the benefit that there may well be several good indepenent garages around you as well.
