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Subaru guru needed! 1996 subaru legacy wont shift into gear while running but will when off.


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Hi names Kellogg im 19 years old, i took out my buddys motor 2.2 outback wagon legacy 5 speed, i got it all done and put back together within a day. but now it smokes white smoke. im sure thats because of the chainsaw gas he put in it cause it was almost empty. but im more worried why wont it shift into any gear while its running? i can shift it into any gear and hit the clutch start it up and then let go of the clutch and it goes fine. but cant shift into any gears while its running. i did not replace anything besides the throwout bearing and the bearing fork. PLEASE HELP!!!!! i only got paid 100 bucks but it was my buddys car. I wanted to see this beast on the road with my lifted legacy wagon with a snorkal, pushbar and roof rack strait piped! 

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well i was driving it in 1st around my buddys neighborhood and i hit the brakes as far down as they could go to see if they did anything and they did right at the end. after that i was driving for maybe 20 sec later i go to try to put it into 2nd and it goes in! then it went into 3000 rpms and it slowed down as like i was hitting the brakes or something then the subaru overheated a lil past half way to the tip top and the middle. I was thinking the brakes we sticking or something? i deflated the tires a bit so when towing the car it stops it self easier. the engine has 265xxx miles. i was driving it around fine till then

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