My 1990 legacy wagon has been having this issue lately. Something to do with exhaust? It is slow off the line, slams into second pretty hard sometimes, and hesitates sometimes before going into third. I gutted the cat a while back and I need an o2 sensor because mine is dead. (CEL, unplugged it) Does this sound like a back pressure (power) issue or a tranny issue? Like I said it is slow off the line but if I gun it or am on the highway it FLYS! I miss my perfromance. I installed new plugs (NGK V-powers) and some OEM wires. I changed the oil over to Castrol GTX blend and I have been using redline fuel treatment every now and then to clean her out. Please advise. (I know the tranny slamming gears is a tranny problem) How many quarts does it hold? Which tranny filter should I buy? I have the AWD auto tranny is this the 4EAT? It does all the mentioned things regardless of weither it is in AWD or FWD.

It is slow off the line, slams into second pretty hard sometimes, and hesitates sometimes before going into third.

I've just bought a '97 Legacy 2.5. It had similar issues (slow start, hard shift to 2nd at light throttle openings). I had to disconnect the battery for a few hours (other reasons) & I think that reset the ECU. Low range acceleration has come back & the shift is a lot smoother. An ECU reset might work for you too.

I'll try that but I am inclined to think it is more of a tranny fluid, filter issue. If someone could tell me which filter I need I would be much appreciative.

I agree with brad, famed subaru hesitation....disconnect the battery for about an hour to reset the ECU's learning subroutines