Wife's 98 OBW with '95 2.2 motor just quit suddenly while driving slow at 20 mph. Motor was not over heating, or low on oil. Made no strange noises, when motor died. The motor cranks with an odd lope, suggesting compression down on one or two cylinders. Timing belt is in place, and turns when motor cranked. Occasionally,  motor will back fire once when being cranked. Am wondering if something is wrong with the valves?? Anyone any thoughts or suggestions...........Thanks!!

timing likely slipped. less likely, stuck or broken valve.  find a diagram/pics on-line for your engine, bring the crank around to the timing belt install mark, check the cams' timing - double check with a tooth count, also found on-line.

http://jdmfsm.info/Auto/Japan/Subaru/Legacy_Outback/1995/

here ya go - should have all the info you need.

I also suspecting jumped/slipped timing. Nothing to freak out about with that year engine, tho

I reckon it’s a cam belt issue - failed bearing on an idler pulley or failed tensioner (rare though). 

I’ve had it happen before, but mine was due to the engine being submerged over the cam area for several minutes. 

Cheers 

Bennie

Thanks guys for the advise. I appreciate it. Will check timing.

Don't overlook checking for spark/fuel. The basics.

 

will do.