I have a Legacy 1994 AWD wagon, 185,000 miles.  
  
The problem is after a downhill stretch. After 4000' of near-continuous engine braking (we live in a mountain area) the smoke is pretty embarrassing. It lasts for about 5 minutes. Oil consumption is significant all the time, but could mostly be other leaks. The rest of the time there are no visible emissions. I've had this problem for a few years and it has even passed smog between mountain trips. For the last three years I have not lived in a smog-test area, but it seems to be getting worse as the car ages. 
  
Here's what I've done recently: 
- changed PCV valve (with Subaru part) 
- checked all PCV system hoses and air cleaner 
- checked spark plugs (no oil on them) and changed them anyway 
- measured compression. 145 on all cylinders. Given that I live at 4000', this translates to ~165, i.e. in spec. It does get even higher when I add a little oil to the cylinder (190/160/180/175, variation perhaps due to different amounts of oil added?) 
- vacuum test at input manifold (steady at 16 and goes up then down as expected with throttle). Looks normal after correction for altitude. 
  
From what I have seen in this forum, this leaves valve guides. Is this a reasonable diagnosis? Anything else to check before pulling the heads off? 
  
Assuming it is, there is other work to do. I like the car, but should I hold on to it? 
- timing belt (last done 75k ago) 
- transmission noise when clutch pedal up. I've been advised this is probably the input shaft bearing. A mechanic said (20k ago) that this might go away eventually as there are two bearings ... is it better to wait until it breaks and get another transmission, or can/should this bearing reasonably be changed sooner? 
  
Thanks in advance for any advice. 
  
Douglas