Rooster2

What is bad regarding the transmission?

I think you need to pull off the road wheel, and look at the pads to see if there is any abnormal wear. Maybe even remove the caliper to get a better look at the pads to see what is going on. As you said, the replacement bolt is not the correct size, so it may have backed out some to cause the caliper to be loose. This sounds like something you should look into right away, as this could be a safety issue.

When it doesn't start, does the starter still crank, or act like a dead battery with no crank?

My guess is that the check engine light is on, and seller is saying the exhaust leak is causing that, so the presence of any CEL will cause it to fail inspection. That may be true, or there may be additional CEL codes that need to be addressed. Suggest pulling code(s) to see what is going on. BTW, an auto parts store will pull codes at no charge. Ask owner when was the last time that the timing belt was replaced. Also, look at repair receipts, if your interest in the car takes you to a higher buying interest. Check for torque bind in the all wheel drive system. Lots written up about that on this forum in the archives. A search titled "torque bind" will give you a good education on the subject. At this point, you really need to look and drive the car to see how well it drives and runs, and how the clutch performs. With that many miles, you should be able to buy the car on the cheap, but like said, it will be prone to break downs. If you are mechanically inclined, and don't mind making repairs, then you should be okay with this car. If you don't work on cars, then taking this car to a shop on a continuing basis could get expensive.

I suppose you are thinking about buying it for a rebuild? I remember there is an aerosol bomb type of product you can put inside a car to kill odors. Don't know if it would work on smoke damage.

CEL is abbreviation for "Check Engine Light." It is the dashboard idiot light that comes on, and stays on, while the car is being driven, when there is an engine malfunction.

Been sitting......quite possible mice have been chewing on the wiring. I have seen that before. Also, had goofy lighting problems on a Toyota, turned out to be a cracked bulb socket holding the brake/turn signal bulb. Your problem is either bulb or wiring. Like someone said, try replacing bulbs first as your first repair approach.

Agree, something is not right here. Talk to your insurance agent about this, not an attorney. They deal with these issues on a daily basis with investigators and claims adjusters. If the other party is coming up with a fraudulent claim, your insurance company will determine this pretty quickly, and put a stop to their claim.

I think that 330K miles on a motor is just too many miles to make it a worthwhile transplant to the 97. For the work involved, you would be far better off finding another motor with far fewer miles to transplant.

If you don't have an OBD2 code reader, then suggest you put-put over to an Autozone or Advance Auto Parts store, or similar parts store. The counter sales guy will come out to the parking lot, and read your codes at no cost. A code read will tell you what the problem is. My guess is nothing serious. Let us know what the code read is. If you are handy with a wrench, it is likely you can fix the problem yourself. Let us know, we will be happy to walk you through any repair.

Yea, knew some of this history, to know it is an old tire name brand that has been bought and sold a few times. Still hard to know if they are any good or not.

Discount Tire sells the Fisk Classic tires. They sell for $72 each. The Fisk tires appear to be a private label brand sold by Discount Tire only. Anybody on this forum use these tires? I know one of the "hands on" techie guys at a Discount Tire store. He says they are good tires, with few "come backs" because of issues. He also says they are made from discontinued Michelin molds, but who knows what tire company bought the molds, or how well the tires are made. I am just wanting to hear from someone who uses them, and what they think of them. I am considering buying them for my 99 OBW with 186K on the odo. I am tight on money, so that is what drives my interest in a less expensive tire.

Love to hear success stories like this. I have both a 98 and 99 OBWs that may need to go this route some day. Where do you find 2.2s in good condition? I live in Indy.

Same thought, replace the t-stat. Might need to boil out the radiator too.

Coolant temperature sensor.

A single drain and fill only replaces about half the ATF in the system. The portion that doesn't drain remains in the torque converter. That is the reason for drain and fill 3 times to get clean ATF in the trany. Still, if the fluid was changed just once, then I don't see how additional fluid changes will help.

I am thinking the poor shifting is not related to the coolant temp sensor. The sensor affects engine performance, not trany shifting. How long has it been since the ATF has been changed? If a long time, I would change it out 3 times, with short drives between changes. It is a pretty ez do it your self project, as there is a drain plug on bottom of transmission pan.

Nice job.........you can find replacement acorn type lug nuts for sale at auto parts store. They are not costly.

I am thinking that a Subaru dealership diagnose for $35, is simply a code read out, and that is it. Spending only $35 at a dealership never buys you much. Since the CEL is not on, it won't tell much. Maybe they can find some old codes that have not been erased for advise. If they don't learn anything, then they will simply want to throw parts at the problem in hopes of getting lucky. Then it is about $90 for a knock sensor, and prolly $90 (hourly rate) to install the knock sensor. I hope they don't advise this approach! Does the CEL light up along with all other warning lights, when key is first turned, prior to turning key further to activate the starter? I am wondering if the previous owner deactivated the CEL from ever coming on??

I am betting the new owner will join USMB asking the same questions. Any takers??

Head gaskets, prolly the most classic description of a bad head gasket ever written, short of saying the motor is over heating. Years ago, I lived in Strongsville, OH.........just up the road from Medina. I have lots of good Cleveland area memories that I carry with me. I remember how nice Mediana is. You might loosen the burping screw/bolt on the opposite end of the radiator cap. This reduces pressure in the radiator, and will let some of the exhaust gas that is mixing with the coolant to escape from the radiator. Your heater won't work well, but it can buy you some extra driving time before the motor starts to over heat. Just be sure to keep enough coolant in the radiator, as it may boil out a little.

When I was a kid, I worked at my dad's gas station. He taught me proper use of an air gun. That is.....always install a lug nut on wheel stud by hand first, to make sure that the nut is threading properly. Otherwise, it is too easy to cross thread by putting the nut in the socket of the air gun and driving the nut on, and hoping for the best that you got lucky and did not cross thread. Too many guys in shops never learned that lesson, or maybe they were taught the proper method, but don't give a damn about quality work.

I had a 91 first gen. The seats were so comfortable. Wish I had them in my 99 OBW. The sedan will make a very nice daily driver!

Pretty sure that I have read that any Leggie either 2.2 or 2.5 starting with year 1997 and afterwards is an interference motor.

Yea, I had the knock sensor go bad on my '98 OBW. Running in limp around mode, or whatever it is called, produced a lack of power, as well as CEL coming on. Writer makes no mention of a CEL. I wonder if his CEL is disconnected?