Hi Everyone! Here is an update:After checking through my matienence paperwork I found that the timming belt, crank seal, and valve cover gaskets were last changed in June of 2005. Seems like a long time for that crank pulley to be loosening (4 years?).
At any rate, my mechanic found a crank pulley and is sure he can fix it without having to put in another engine. I will be having the other parts changed as well (seals, timming belt, might as well, and water pump) just so I wont be doing it again in 30,000 miles.
I really appreciate all of your comments and helpful hints. You all are the best and it is nice to find people who love their subaru's just as much as I do. I'll let you know how it goes, should have her back by Monday night : )
~B~