The heat thermometer in the dash, jumps around alot. Hot air comes out of the heating system and the thermometer will still say its over heating. Im going to try bleeding the system, Im just stumped because other times i had problems cold air would come out. Any Ideas?

Welcome to the USMB.

 

You're having "classic" Subaru 2.5 DOHC Head Gasket problems.

 

Lots of info around here on doing this job.

 

Search and be prepared to read.

 

Miles?

 

How long has it been overheating?

 

That kind of info will help folks advise on doing the HG job or replacing the 2.5 with a 2.2.

 

Also a decent state/town in your profile if you would. I don't know how many Halifax's there may be.

Well lest start with the basics. Look under your hood, what does the coolant in the overflow tank and radiator look like?