I voted fourth as my favourite. I've driven 3rd, 4th (AE70 Sprinter, AE71 Sedans at/mt, KE70 Sedans at/mt + 4AGE, KE70 vans and wagons, TE72), 5th (good 4A-C AE82's and bad), 6th (AE93 SX).
All have their pro's and cons but the E7 series has the most pro's. AE71 Sedans with manual trans being my favourite. Some models from 1st, 2nd and 3rd gen have dead sexy looks but the standard driveline in our Aussie crap we got of the first three gens is uninspiring. 4th Gen onwards are good fun too but front wheel drives are just not as much fun when the heavens open up. Toyota really got a lot of things right with the E7. Most have r&p steering, still RWD format, most models look really good, especially overseas versions, coil sprung rear (except wagon and van), good weight distribution, still a light car, comfy as (T-18 seats fit any model E7 and fix the problems that the aussie seats cause).