Coming from passenger side front tire on 86 ea81 hatch. I have replaced the bearings in the last year and yes they were seated. I have tried lowering the suspension back down a bit ( ok as far as I can get it to go which looks to be about halfway) I have robbed the steering knuckle off off of my poor Brat whos only crime was needing a new heart.. The steering knuckle helped a lot as far as the noise went and that was 3 months ago.. Now the noise is back. It is not noticable to me while on the gas. It is noticable when letting off and very bad when turning left any amount at any speed. The only things I can think of that I havent tried swapping out are the strut assemblies with the springs and the tranny. Bring in the Sube Gurus.

I would not be surprised if it is the suspension bushing for the transverse link (what subaru calls it - it is also called the lower wishbone and about a dozen other things ...) I could also imagine it could be that the rubber for the radius rod is shot or even the sway rod rubber/bushings - how about brakes?? and does it vary with engine speed??

Ya it does vary with speed.. And had thought about the brakes but I have just did a brake job when I did the knuckle. The problematic side looks like it may be closer to the fender than the drivers side maybe by an inch. Does that help narrow down the possibilities?