Dee2

They're not worth $5k. Even in great condition, I think you would be very lucky to break even. More realistically, expect to lose money if you sell it. My advice would be to keep it and drive it.

When trying to diagnose engine performance problems, an easy test to perform is a vacuum test. You can learn lots from it. Reconnect any altered hose connections, then run the test.

It's hard to offer advice on this type of problem without some clear photos.

backfiring can be an indicator of a timing problem.

This is usually a sign that the starter solenoid contacts need to be replaced. Very inexpensive and easy to do. Several videos available on youTube. Beyond that, you may also need to add a starter relay. Also very inexpensive and easy to do. Starter relays are available off Amazon in a kit.

Is fuel actually getting to the engine ? Getting spark at the plug ? Distributor oriented correctly ?

Any computer codes ?

https://www.google.com/search?q=how+to+check+power+at+coil&ie=utf-8&oe=utf-8

Your picture does not appear. Also, You should stop posting "continuations" in new threads. To continue your post just reply to your own previous posting. And, you need to boil down your content. Too much information. Post a little background, a question and then wait for an answer.

This. Check the code, resolve the problem, then see if the stalling persists.

I agree with jsyme. Weak battery is a good place to start, check / clean all the connections. If the problem persists, check the distributor cap for cracks. Moisture in there can cause problems.

Probably the wires grounding out somewhere. If you can access them cover them with some split corrugated tubing to keep then out of contact with the body/frame.

some old suggestions here: http://www.ultimatesubaru.org/forum/topic/156011-our-cars-unique-quirks/?do=findComment&comment=1305353

bad thermostat ?

Google "what causes burned valves". There are many things that can lead to a burnt valve. You should look into reasons why only one cylinder has the problem.

you can use a torque table http://electronicfilters.tpub.com/TM-10-4330-237-13P/css/TM-10-4330-237-13P_105.htm

Problem is also called 'memory steer or steering memory'. Google the terms with/without 'subaru' and you will find suggested solutions. http://www.freeasestudyguides.com/memory-steer.html

this guide will help you analyze the vacuum readings http://www.secondchancegarage.com/public/186.cfm

You're going to have to go through all the timing aspects...and set it right.

put a vacuum gauge on the engine and see what it tells you.

Here's a link which may help. I think part is similar for multiple engines. May be hard to actually find one though. http://parts.subaru.com/a/Subaru_1990_LoyaleTURBOSEDAN/_54102_6030262/TIMING-HOLE-PLUG--TRANSMISSION-BOLT/A11-005-01.html

this may help http://www.ultimatesubaru.org/forum/topic/82824-does-anyone-know-ea82-head-bolt-part-s/

I would get new ones. Any parts store should be able to help you.

Sounds like it could be a valve problem. Scenarios 5,6,7,8 on the interactive chart all have similar readouts on the vacuum gauge. All indicate a valve problem. Subtle differences distinguish types of valve problems.

How do you know it's not a bad axle ?