My Ford Escape Limited was purchased in March 2003 after our baby crowded us out of a compact sedan. At $28k, it was a bit pricey, but we got a sunroof, leather heated seats, reverse sensors and a 6-CD in-dash stereo. The space was great! We can fit two suitcases, a duffle bag, diaper bag, and Christmas presents for six in the back but had to put extra pillows and blankets in the back seat.
Now with a toddler car seat and a booster seat in the back, we are out of room. There isn't enough space between the kids' seats to hop back there when one needs help. When we still had our infant seat, we could not move the driver's seat back. I actually got permanent stains on my pants from rubbing against our black steering wheel. So, I say this is a great, no, fantastic, SUV for very small families, empty nesters, retirees, college students or anyone who needs just a bit more space than a compact sedan could offer.
The Escape handles like a car, which is great on those steep onramp curves. I never feel it shifting. The V6 should be the bare minimum engine on this vehicle, as it really needs that much power. Braking is a bit heavier than a car but took no time to master. The brakes do squeak long before they should. We haven't needed to fill the oil but do fill the washer fluid more than we'd expected. I used to think the 'Check Battery' light came on every time we started the car. I finally took it to the dealership, and they said it was actually the 'Low Washer Fluid' indicator. Why the light looks just like a battery is beyond me. Gas mileage has been better than reported by Ford and has been comparable to our prior vehicle, a compact Volkswagen sedan. I want to say it's 22 to 27 mpg combined highway/road driving.
We've had very few problems. Maybe it's just me (read: my tushie) but the heated seats come on whenever I sit down, not just when I hit the button. But maybe I am bumping it when I slide in...? A minor nuisance. The windows freeze shut in winter, only lowering after I push the button up and down repeatedly. Road noise is awful, and must be improved by Ford. My husband and I often have to raise our voices to have a conversation. We cannot hear our 5 year old son in the back seat if he does not shout as well.
Our back hatch or window was rattling, and we had to have that serviced. It is now rattling again. It sounds like the hatch isn't closed properly, but it is. This started after a year of ownership. The gear shift blocks access to the radio and air controls (which has been fixed for the 2005 model). The controls are very easy to operate, and I never need to look at them while driving. I just reach over and adjust the volume or fan. Cruise control is built into the steering wheel and is operated with a thumb. The cupholders are not quite tall enough for a Thermos-type cup but manage fast food drinks very well. The storage under the armrest is fantastic and much needed. It's a deep well where we can store CDs, sunglasses, cell phones and chargers, checkbooks, even day planners or books. I don't think it could store a gallon jug of milk, but it'd be close.
The seats are spaced far enough apart for the driver and passenger to be comfortable. The seats need a bit more space against the door, but that's probably standard in a compact SUV. Legroom is great for me, and I'm 5'9". I sometimes bump my head on the overhead handle as I'm getting in, and it hurts. I've also been known to bang my head against the window glass while shifting around in the seat. We've driven from Michigan to Florida and back, and the seats are superbly comfortable.
We had a flat tire and had to call AAA to help us because we could not use the jack that comes with the car. My husband said it would need to go under the middle of the car somewhere because the body structure around the perimeter would not support the weight of the car. The tow truck driver had to use a 2 ton lift, and he struggled a great deal to get the tire changed - and he's a professional! (Update April '06: It is critical that you have your tires rotated regularly. We did not! We just laid out $400+ for four new tires. Our front tires went bald, and our back tires were rippled. We were told it was from lack of rotation. We avoided a second set of Continentals just to be sure.)
All in all, I like our Escape. Seats are comfortable, with heat for winter as a real luxury. It's spacious enough for a family of 3, but not 4 even if the kids are very young. It offers modest trunk space for trips. It just needs some fixes like the road noise, tire changing difficulty, and the odd sensation of a warm tushie on a 90 degree day in August (when the seats turn themselves on).

Update Jan 09:  We've now had this car for what, 6 years?  It's up around 87000 miles but still working. Unfortunately, we've now got 3 patches of peeled paint. The biggest is about 4 x 3 inches and is just above the windshield. We had to replace the alternator, and the new one does not work properly. There is a tiny bit of rust on a door panel. It's otherwise held up well. Having two other cars (another Ford and a Mercury), we know this has the superior radio with clear reception and information on a song's title and artist. A great feature! After all this time, I still recommend this vehicle to small families and singles.Update 2010:  We recently got rid of this vehicle. By its 5th year, it had rust spots and paint bubbles. By the 6th year, massive areas of paint had stripped off of the roof. I'm talking about 18" x 12" in just one spot alone. There is a paint defect, and Ford does not offer to fix it. However, we got an amazing $3500 trade-in, paint missing and with 86k miles on it, so great resale value. Still recommended!
Amount Paid (US$): 28000
Condition: New
Model Year: 2003
Model and Options: Limited, Moonroof, Reverse Sensors