Yes the smoke is coming out of the tail pipe (or whats left of it, cut off at cat.) and it is coming out of pass side valve cover vent hose but not the PCV hose. And yes it is blueish in color like oil burn off.
The clutch works great and I have driven it in 1st gear in 2wd-4x4hi-(neutral)-4x4low. It just wont shift out of 1st. The shifter is all floppy but all the external linkage I see looks good. Is this common with these?
Oh, one more thing,,, Never seen a dipstick on a manual transmission before, is this common on Subaru's?
Does anyone know what effect it would have if I removed and capped all the vacuum lines (except the essential ones)
I'll see about putting some pictures on here.