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The oil drain back passages are huge. Like 1.5 x 3 inch.

It's half of one of the spring washers used to separate the rocker arms. It just fatigued and broke - the other half is somewhere. Way too big to get sucked into the oil pickup so not really a problem. Just pull the valve covers, and looks like its time for some maintenance. Replace all those washers and a good time to do the lifter o-rings. GD

The clutch friction material was completely off the steel disk attached to the hub. It looked like a bird nest in the bottom of the trans.

Put a proper charger on the battery over night to get a full charge on it - then take the whole car in to be tested immediately. It is better to have it tested in the car than on the bench. I have had alts test fine on the bench, but prove faulty when tested in the car. Repeated battery drains WILL kill a battery much faster than "normal" usage does, so do not be surprised if the battery is shot. A bad battery will kill an alternator and a bad alternator will kill a battery. And yes, the aftermarket remans are junk for these cars. I had one for my 95 Legacy rebuilt at a local to me shop - it cost a bit more, but he used high quality parts, not the cheap stuff most remans get in them - and he guaranteed his work.

Correct, your car comes equipped with headlights from the factory. Good observation. GD

I would pay the core, grab any needed parts from your old one, put in the new one and recycle your own core at a local scrap yard and save the gas and windshield time. You can also ask them to waive the core. They do sometimes.

And there would be no way for me to know their condition, right? So it still sounds like I am better off to keep looking for a 00-05 with a blown engine.

Nope, urban legend. lol

I put the car back together earlier this evening and I'm just going to take it to the mechanic. Same trouble codes, same issue with the gauge cluster after replacing parts of it, Tried swapping the TCM as an ECM isn't available in my area unless I want to buy a brand new one and have the dealership program it. disconnected and reconnected all the connectors, tested them for continuity, etc, etc. Tested all the relays we could see under the dash, on and on. I agree it's probably an issue with the ground and/or the wiring and we just can't see it. I'd keep plugging away but it's one of my parent's cars, not mine and they kinda want it back. I appreciate the help, though. A few days ago I was given a free 2000 Impreza Outback as a project/learning experience and once I get going on that I'm sure I'll be back with more craziness.

You and i were both right. I said right from the start it was either fuel or timing, so today i pulled the injectors from a car that ran until the engine went, put those injectors in my car, and it ran perfect, at least, right up until the exhaust came apart right before the muffler, but, i knew that was eventually going to happen anyway, since it was getting a bit rusty on that flange (ok, so even after the exhaust came apart, it still ran fine, it was just louder is all). One of my tests was to unplug the fuel pump, disconnect the feed and return lines from the fuel rail, connected the feed line to a pump i have, and ran a hose from that into a gas can, then, ran a hose from the return line back to the gas can, and it still wouldn't start, so i said then it was injectors or possibly FPR, and that's when his argument started about never having seen all the injectors get plugged at the same time. I kind of made him mad today, because i said, from now, im listening to my instincts, and not what he says.

Toad; Are you checking craigs list under auto parts? I know the NW has most of the Subarus but someone in Kansas should have a crashed one.

Up to 2005 will work. 2007 has variable valve timing .I don't believe your ecu will be compatible.

tell you what, if you run an EA dizzy with a vacuum canister it may be a good idea to service it. I must have pulled four apart today. Well, actually picking up where i stopped, and according to receipt for M4 cup hex ' bolts' i bought for the job - i started this 17 Sept 2010 ! The platd the module sits on that shifts with vac advance (& boost retard if you have one) has an upper set and lower set of ball bearings so things move easily for vac can. The underside set is spring steel and has captive elongated cups that look to be moisture traps causing rust to form on balls and retainer a tiny wire spring clip on underside allows it all to come apart for cleaning and regreasing and boy if you can get some rust free components in there sure makes a difference and shojld allow vac can to work without additional resistance. i used a Nulon brand grease with ptfe and claim it does not fly off rotational assemblies no pictures ..hands too grubby no report on how it runs any better yet

Google this: ultimatesubaru/frankenmotor Start reading then take two aspirin & call us in the morning....