Right!  I have the 407 SE Lux pack saloon with the 136 HDI engine.  
There is not a lot wrong with it.

I have had one problem, the end of the indicator stalk fell off, and
was replaced under warranty.

I drive quite a lot of different cars,, and the 407 is one of the best
IMO.

I think the talk of a rough ride depends on what you compare it to.  
Certainly at motorway speeds it is very quiet, comapered to say a
Passat or Mondeo, and the suspension is softer than some.  Despite
that it still handles well.  You do feel the bumps in the road at low
speeds, but they don't affect the handling or knock the car off line.  
I would suggest a test drive if you are concerned about it.

For driving enjoyment I have never found anything better in its class.  
But last week I drove a new Astra with the 150PS CDTi engine and the
"sport" button, got straight out of it and into the 407, and for the
first time ever the 407 felt heavy and soggy.  But the Astra is
probably best in class, since I never felt that after driving a Focus,
and one of the reviews thinks the Astra in that form is better than a
Golf GTI.  I was very surprised at how good it was, having driven
every one of the previous four generations of Astra, and having owned
two of them.  This is a seriously impressive car.  It belongs to my
boss who says he would have gone for a 407 if his wife hadn't said it
was too big.

But I digress, overall I am very happy with the 407.   If you wanted a
sporty car anyway, you would be better going for the new 407 Coupe,
which some consider to be better than the Merc SLK.

Some people have had problems with fuel economy with the 136 HDI
engine.  At first I did too, but it soon improved and I now get low to
mid 40s pretty consistently.  I once managed 117 mpg by chugging along
for four miles through motorway roadworks in 6th gear. I gather
somebody drove one across Australia from Darwin to Adelaide at an
average of 73mpg.  It can be very economical, but is very sensitive to
how you drive it.  Much more so than say a Passat. Thrash it and you
will be disappointed.

It is the only Peugeot, by his own admission that Jeremy Clarkson has
ever had a good word for.  He described it as a refreshing alternative
to the usual run of German cars, but he found it difficult to get
comfortable in the driving seat, and if you are tall or long legged,
you might find the same.  Also Jeremy doesn't like turbo diesels, as
is well known.

As a drive the 407 seems effortless. Laid back and relaxing, just what
you need for long motorway journeys.  Its style is cool and competent,
not "in your face" like a hot hatch. But it seems to treat your boy
racers in souped up Novas with contempt anyway, it is no slouch.  If
you want an exciting drive look elsewhere.  If you want a car that
leaves you feeling fresh after a 400 mile drive, the 407 might fit the
bill.

Martin

Why would you think the 407 is competing with German cars ?

A 3.0 V6 407 is £21,000.

About the only BMW 3-Series that falls into the same price bracket, is the
pikey-spec 318i SE. A decent 3-Series costs a bunch more, never mind a
5-series !

The 407 is in a completely different class. It's competion is the Mondeo and
Vectra, not the German Luxury cars !