FSRBIKER
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I did a little research today and yes the 96 engines had hydraulic lifters vs solid starting in 97, they also revised the intake to achieve 10 more HP. I am swapping my intake onto the engine anyway so I'll have the new design and will see if the the lifters are hydraulic when I have the engine open for the new HG's...either way I'll probably leave whatever is in there alone.
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I am going to take the shrink wrap off and lift it onto my workbench tonight but it looks like it came with the alternator, ps pump and ac compressor as well so I now have spares. Once on the workbench I will be swapping the headgaskets with the new design ones and resealing it up before the install. You should just be able to drill and tap for the EGR valve if the JDM engine doesn't have one and install a 2.2 without swapping any gaskets. I dealt with Mike at TigerJapanese.
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Next set of tires for me will be the Goodyear triple treads, filter the reviews on TireRack.com for Subaru and there are TONS of people who have installed/love them. With a directional tire you can only rotate front to rear on the same side which is not a real big issue, but you can always dismount he tires to rotate them side to side as well but not worth the expense IMO.
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I bought mine today for $920 shipped to my house with liftgate service. These guys(I dealt with Mike) were very nice on the phone and I should have my engine in about 4-5 days. I am going to install new Head gaskets before I install it though to give me piece of mind. http://www.tigerjapanese.com/index.php?cPath=47
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If you haven't done the head gaskets do it all like others said. It's simply not worth tempting fate as it's only a matter of time before they go. Reseal the whole motor, new head gaskets and a new clutch and run it for another 100K+. You can probably find a Subaru tech in your area that will do the work for you so you can save some cash.