Two more ideas: BMW 3 Wagon, a new or used MB E Wagon

Here's an article on 2002 model:

http://www.forbes.com/2002/03/25/0325test.html

You can get an AWD model too. It's elegantly styled and can seat up to 7 (with 2 rear-facing seats). Newer model has better style but older model is mechanically solid and proven. Pick either one according to your budget and you'll be happy.

I have an XC 90 and a BMW 3 wagon, quite enough for two kids, in my opinion. I'm BMW biased, but I always liked the MB wagon. I seriously considered it before deciding on the XC90. I've posted a few pictures in this forum before if you care to search.