I picked up a 96'Legacy out back with the EJ25 for $200. The trans seems to not shift from third, up or down. On drive it starts of I third and stays, no overdrive or other gears. Reverse works fine, a lil jumpy when you shift into it. Shifting to first alone the car won't hardly move it all as if the brakes are locked up. I changed the fluid and filter but nothing changed. Inspected the solenoid, seemed to be fine. Any you know what's going on or had this problem?

Well... if the cars really clean and you like it.  Pick up a crashed / rusted 96 2.2 car with another transmission . Some 96 outbacks had the non interference 2.2 and some came with the double cam (bad head gaskets)  engine... 

Sounds like the TCU isn't doing anything. Those are the symptoms of an unplugged or not powered TCU. The trans defaults to third gear with line pressure but no electrical control. Make sure all connections are tight to TCU and transmission and that you get an AT Temp light during the bulb check. Check power supplies, grounds, etc. 

 

GD

The AT plugs in the engine bay or the TCU are unplugged or the TCU is unpowered or failed (which is quite rare). 

 

You'll also have "locked" 4WD, drive it in circles on dry pavement and it'll feel like it's braking as well.  

 

If you do replace the trans I'd pull the entire lump and drop an EJ22 in at the same time and move away from the EJ25 while the opportunity presents itself. 

^^^ what he said

 

 

or, consider pulling the heads and properly installing multi layer steel head gaskets - it probably needs a timing belt system service and the oil pump back plate resealed too.

The AT plugs in the engine bay or the TCU are unplugged or the TCU is unpowered or failed (which is quite rare).

 

You'll also have "locked" 4WD, drive it in circles on dry pavement and it'll feel like it's braking as well.

 

If you do replace the trans I'd pull the entire lump and drop an EJ22 in at the same time and move away from the EJ25 while the opportunity presents itself.

Where are these connects located. I'll give em a look. I'm just driving this for now while I do the EJ22 swap on my 85 GL, so don't really want to dump money into it. Just seeing if it might be something stupid and simple. If not I'll just drive it like it is until I get the 85 done.

2 llarge square connectors right below the "dogbone" engine mount.  Might need to remove air intake tube/box from throttle bottle to see them.

 

Also check that the TCU is plugged in under the dash.  Left side of steering column under dash mounted vertically.  Probably a 3"x 5" box with a single about 20 pin connector.