I generally play the blues, but wanted to improve my legato and alternate picking technique.

Could you recommend some medium difficulty songs I could have a go at?

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If you want to improve techniques like that in a bluesier context, have a look at some of Joe Bonamassa's original material, or even Eric Johnson. EJ is a great case study in clean, gorgeous sounding lead playing and the guy uses a whole range of techniques.
Have a look at some classics such as Layla, (great lead line), Parissiene Walkways (might be a challenge, but worth it), the leads in All Along The Watchtower (Hendrix) are great.

Pretty much most of the stuff by Jimi Hendrix, Gary Moore and Eric Clapton as well as countless others will help you move on to the next level with lead playing.
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