Driving his Audi TT RS, Close and his co-driving wife Casey had a largely trouble-free day to finish eight seconds clear of pre-race favourite, Jason White, in his Lamborghini Gallardo, with young gun Brendan Reeves in a Mazda RX8 SP third, a further 17 seconds further back in the modern competition.

It was a day of drama in the two-day Hobart-based event, which is round three of the CAMS Australian Targa Championship.

The early leaders in both the Classic Outright and 4WD Showroom competition, George Miedecke (Ford Capri Perana) and Ric Shaw (Mitsubishi Lancer Evo X), crashed out within a stage of each other, despite conditions being perfect for tarmac rallying.

Miedecke and Ralph Norton both finished in the Huon River after missing a corner on the day's fourth stage.

In fine and sunny conditions, the 120 cars contested seven tarmac stages covering a distance of more than 121 competitive kilometres.

Close knows White is still a real threat with over 80km remaining, but was determined not to succumb to the pressure that is sure to mount across the final stages.

``We had a really good day,'' a delighted Close said.

``We've been working on a few things on the car since Targa High Country and we're really happy with the way it's worked out - the car started doing the things we wanted it to do.

``You know, the road up to Tahune is really tough on the car and doesn't suit it, but we showed people what it could do on the Esperence Coast stage where the terrain suited it better.

``We didn't look at the results all day and that's exactly the same approach we'll take tomorrow. If we're good enough at the end to get on the podium, that will be a fantastic result for us.''

After Miedecke's accident, championship leader Donn Todd surged ahead in the classic competition, but he too dropped time on the last stage, leaving Launceston's David Cooper in the lead in his 1977 Torana A9X.