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If you're doing timing belt, break loose the crank bolt before taking out the engine. On retightning, service manual probably says 90ftlb's, I'd do 100-110ftlb's.

Yes, pull the engine it will make the jobs much easier. Reseal the rear breather plate behind the flywheel when you have it off. Don't mess with the rear main crank seal. The Subaru seals last forever. It's the breather plate that starts leaking.

Y'all were right: it was the timing. When I got everything off the front of the engine, I could see that both cams were advanced about half dozen teeth relative to the crank. I have no idea how I did that. When we put it together the first time, we got the lines on the belt on the marks on the sprockets, and stood back and admired it, and looked twice...and somehow we got it wrong. So, we reinstalled the belt, and got the lines on the belt on the marks on the sprockets, and looked twice, and somehow we got it right, because this time it started right up. Thanks for your help!

New subaru timing belt and pulleys. Those old school tensioners rarely fail and can be kept. While the timing belt is off, replace the cam seals, cam orings, crank seal, reseal the oil pump (one oring and RTV) and tighten the backing plate screws. Inspect or replace the knock sensor while the engine is out for the clutch job. Remove the 12mm bolt and look at the base - the rubber starts to crack where it sits on the engine block. In the past if I plan on the engine being around awhile I'd just replace it because over time they are the single most common sensor failure on that vehicle by a loooooong shot. New valve cover gaskets, plugs, wires, air filter If you want new headgaskets use Subaru head gaskets, resurface the heads, clean and lube the bolts/threads, and properly clean the deck (no wire wheel or sanding). They rarely need valve jobs, the valve stem seals and guides aren't prone to issues on those. The 97 legacy alternators I think work in a 1995 and are only $70 from Subaru: part number 23700AA211. They're still not as good as new OEM but still a great price and beats the local auto parts garbage. If you're in a rust prone area inspect or replace the brake pad clips. If they're original and not rusty and it will see salt then consider keeping them since new aftermarket clips rust much faster than the original OEM's. Or just get OEM pads if they're still available that come with the cilps. Subaru pads are excellent and last way longer than average aftermarket cheaper pads. Frequently cars that sit in salted areas will accrue rust around the pad backing plate and clips that creates easy hang up spots. New pads will hang on those rust ridges and compromised pad clips and wear out in well under a year.