OK here is a rundown of my problem....

Was driving today and the car overheated, poped the hood and radiator fluid splashed everywhere, felt the manifold?? not hot just barley warm,checked the overflow and it was pretty full and the anti freeze was darn near cold, noticed that it smelt like oil so i proceeded to pop the radiator cap and a little anti freeze came out but not much, check the anti freeze (in the radiator) luke warm at best... all the sudden the darn manifold??? and engine heats up in front of me as soon as i poped the radiator cap? no clue whats wrong but i also noticed that when i drive i get such horrible gas mileage like when i am at 1/4 tank i drive 10 miles i waste half that 1/4 tank (this is driving par subarus reccomended shiift rpms in the manual). Oh well i cant think of anything else but maybe someone could shed a little light before i am forced to take it to *gasp* subaru and get stuck with one hellava bill. cheers thanks a bunch

Headgasket. When you opened the rad, it allowed the gas bubble in the water pump to escape, and coolant flowed through the engine, which is why the manifold suddenly got warmer.

 

"Gas bubble" causes vapour lock and stops coolant circulation.