I believe I'm experiencing the same thing (torque binding on a slow turn) on my 94 Legacy, which has 135K miles.
Question: If you install the FWD fuse and the symptoms go away, and stay away, is that an indication that the Duty Solenoid C is functioning properly?
After reading many postings on the subject, I'm convinced that I need to replace the clutch pack and/or possibly the whole extension case. I keep wondering why tire size is mentioned so often when its seems to be irrelevent to a torque bind during a turn. I can understand how it might contribute to clutch pack wear, but can't see how it would contribute to solving a binding chatter that occurs during a turn. (well, maybe if you were running 35's and blew one so had to put the spare on )
Does anyone know of an online source for Subby parts? If you do, please email me at rickivie@aol.com There is only a quasi Subaru dealership in our town (It's actually a Chevy dealer who just started selling Subby's) and they had no idea what I was talking about when I asked for pricing on a transfer clutch pack, or even that a Subaru AWD transmission had something like that.
PS. My Mother-in-law was having the same problem with her 95 legacy, and her nephew (car salesman) convinced her to trade it in on a Toyota Camry. She has regret it every since.