My 1996 Subaru Legacy 2.2 started to run lumpy. It finally threw an engine code P0303. Cylinder #3 misfire.

 

I used a timing light to verify spark through each plug wire. #3 sure enough was dead. When I pulled the wire off the coil pack, the plug fell off - the wire had arc-ed itself to death.

 

On the coil side, the bakelite insulating material had been pitted and the terminal was eaten up.

 

 

Replacement coil from Pep Boys for $99 and the problem was gone.

Thanks for sharing. Yeah that coil looks toast.