I bought my first Subaru, a 91 Subaru Loyale. The previous owner put a 2" lift kit on it and now the tires toe inwards causing them to ware out on the outside.  Any ideas on whats wrong and how to fix the problem?  I would like to keep the lift if I can because I like that extra clearance, but will take the blocks out if thats what needs to be done.   

They tend to wear that way with stock also. I saw a thread on here a while back were someone modded the suspension to mitigate the uneven wear.

There are two issues you run into with lifting these cars. First, if the strut tops aren't moved inward you'll have positive camber which wears the outsides of the tires. My car was initially lifted that way and it didn't work very well. The only way to fix that is to either use offset lift blocks or drill new holes is the strut top. I designed offset lift blocks that moved the strut top in about 15 degrees with respect to the knuckle, this almost zero'd out my camber. I'd have preferred slightly negative just because the camber goes positive when the wheel flexes down. Next time...

 

The other issue is toe in, that's really easy to fix because toe is adjustable at the tie rods. After you have the camber set where you want tie the steering wheel in the up position (driving straight) and do a jack stand and string alignment. Or I guess take it to an alignment shop, but where's the fun in that