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We had a 2ltr diseal picaso untill last year towing a bailey ranger 500/5 have since changed to a 2.3 petrol galaxy. U often wish I had stuck with the Picaso and the problem I had with it at the time which  was unreleated to towing.
We had 2 adults 2 teenagers and a toddler in the car plus all the associated  clothes etc that go with you for a holiday. We towed the van with the picaso for 2yrs going over the north devon hills and the climbs up to dartmoor and bodmin on the way to cornwall. You will never be at the top of the hill first with the picaso (who wants to be first anyway) and I found on the straight I would be  struggling to stay at 60 probably averaged around 55 on the straight hills I would typicaly go down to 2nd pnly ever went to first once and that was more because of the bend on the hill forcing me to slow down.
I've found that althgough I tow at a comfortable 60 with the galaxy I'm not happy with fuel consumption as its not much better then the Picaso was Bristol to Chycarne on the Lizzard in Cornwall 191 miles fuel used in picaso around 3/4 of a tank fuel used in galaxy just over 1/2 a tank.

I would rather go back to a picaso because towing or not I prefer its fuel consumpstion. I got shot of the picaso becaus the gear box was making noises and I thought it was better to be rid of then a big repair bill.

Derekm1, I have the exact same concerns, I have the 2.0hdi but the same power output, I will find out tomorrow for sure, but I am made a lot happier by Peckers' post above, basically that is the exact same outfit that I will have.

Your 1.6 will have more torque than mine (according to Parkers guide anyway) so if Pecker was fine, and I am on here to post tomorrow night then you shoudl be fine! :)

Well, here I am on the other side....

It was absolutly fine, from the moment we hitched up to the drive to the reversing into a 10ft wide gap.

When it was hitched on, if i had taken a picture of the outfit and cut out the caravan you would not tell anything was attached. pulling just seemed a bit more slugish than normal, but was fine through the towns and country roads, braking was good i was leaving myself plenty of time and space but it really stopped efficently.

On the motorway we got up to speed quite quickly and it felt very stable at 60, the only thing to note is the hills(!), it would cope fine if I prepared properly, but on the 2 occasions I was not looking at the inclines ahead it did slow down to 44 and 3rd, but the preparation for the hill I found was to give it some extra beans on the approach, hit the bottom of the hill at a strong 60 and I came of the hill at 58.

I stayed in 4th and 5th for the majority of the journey on the Motorway

but all in all a relief and pleasure to tow with that outfit!

When do you get yours D?

Good news PF.

 I am pleased that you found the Picasso as capable as we have.