I bought this 1997 with a bad head gasket. I had a retired mechanic that specializes in Subaru's look at it and install a new head gasket, timing belt and water pump. After the work was finished I drove the car for about 10 miles and still ran into the same problem. The temp can be lowered by speeding up and or revving the RPM'S.
I live in Wi and now it is cold, I took the car for another test drive and this time drove 15 miles and it drove better however it still runs on the hotter side. I noticed a gurgling sound which to me sounds like air in the cooling system.
I was looking for any input to help resolve this.