NorthWet

I am guessing that this is an SPFI engine. The fuel pump runs for just a few seconds after the ignition is turned to "ON" to build up pressure, then it powers off until the electronics get a signal that the engine is turning. (On the SPFI/MPFI engines, this is from a signal from the electronic distributor.) It is normal for the pump to shut off with ignition on and engine not running. I would probably check the fusible links, which are in a small black plastic holder near your coolant recovery tank. You may have made one fail. (The black one???? Memory isn't working this morning...)

The manual in my 90 Legacy wouldn't allow the car to move at all without the rear driveshaft connected... And just to throw gas on the fire, an open differential by definition provides a 50/50 torque split. Cheers!

As Miles typed, the senders and gauges are notorious for not being accurate. I had one that read negative... If the oil pressure is really low, you are likely to hear the HLAs clattering.

Part numbers from where? The Dealer, or a specific parts store? The seals are commonly available at parts stores, and as long as your Loyale really is a Loyale (1990-up) there should be no ambiguity in the parts listings.

I was not saying that swapping all of that stuff is easy, just that it isn't required. The PS pump has a different reservoir, but that is the only difference in accessories between my XT and my turbo wagons (other than the fitment of ribbed-belt pulleys). Pretty sure that locating pin is just a roll pin. When you pull the pulley off, sometimes it stays in the pulley, sometimes it stays in the cam sprocket. On my XT with spider manifold, if I work at it, I can see the flywheel marks to set the timing. You have to find just the right position for the timing light, but it is doable.

The EGR code is caused by a problem in circuit/wiring of the EGR's vacuum solenoid. This is a common problem, and the usual cause is a bad solenoid. This solenoid is a little plastic box with 2 vacuum lines attached, and a pair of wires running to it. The solenoid coil tends to fail. Replace with another solenoid, or you can also replace the solenoid with a resistor of a specific resistance

The following thread, post #4, gives the procedure that I have used in the past: http://www.ultimatesubaru.org/forum/topic/59361-89-turbo-automatic-transmittion-in-a-loyale-quit/?hl=codes&do=findComment&comment=479811

The one that I have used on the Loyale's 4EAT is a little bizarre and complicated. I will see if I can find it.

Wow! Impressively bad.

A more permanent, if more involved, solution is to have a machinist fill-weld the current holes and retap them.

Many well-respected members recommend Subaru Dealer-only on the intake gaskets. There are plenty of thin, low-quality intake gaskets on the market. I've used Felpro without any problems...yet. Coolant does NOT produce white smoke, it produces water vapor. Condensed vapor and smoke act differently in the air, with the vapor dissipating "into thin air", while smoke only gets diluted and thins out. It is a useful diagnostic to notice the difference. BTW, white smoke is typically caused by burned ATF.

Although the TPS could very well be the problem, it might also be dirty fluid, or possibly the "POWER" resistor unplugged. (edit: The POWER resistor would effect firmness of shift, but not when it shifted.)

Any DOHC head with separate sprockets for each cam has the potential for valve-to-valve interference. This depends on lift and valve geometry. DOHC heads that only have one sprocket per bank (with a chain driving the other camshaft, like in the EG33) don't have this issue (unless the chain breaks...).

I stand corrected. My previous post has been edited to reflect this.

There was actually next to no work done for the XT. Most XTs come with a standard MPFI manifold. The only difference I have noted is a a different PS reservoir. My XT comes with a full complement of flywheel marks, but no guarantee that either its flywheel or its spider are as original.

I am reasonably sure that all of the EA82 flywheels have the timing marks on them. It would be extra work to have a separate part for a handful of engines.

Edit: See next post for how the overheat indicator works. Pretty sure that is an overheat indicator. If the head gets too hot, the adhesive softens and the marker drops off, voiding the warranty on the engine work. The crankcase vent is large enough that if it was there you would see it. Pretty equivalent in size to the camcover vents.

This is a typical picture of a thrown rod in an EA82: So, does the top of your engine (underneath the intake manifold) look something like this?

Non-turbo pistons. As mentioned, the MPFI blocks (both NA and turbo) have a crankcase vent tube rearward of the knock sensor.

The motor brushes can also wear to the point where the motor won't work.

There is a rubber plug on the t-covers that allow access to the tensioner bolts. You should be able to check tightness of the belt by removing this cover. I have had tensioner bolts back out and completely lose tension. As far as throwing a rod, the sound and the hole in the top of the block would make that easy to diagnose. The whole would likely break through the top-of-block coolant transfer channel, causing a massive coolant leak. It is also likely to break loose the mounting of the power steering pump.

Is your car an automatic?

I beg to differ: As long as the distributor has not been unbolted/removed, the distributor should be phased to cam. As long as this cam is aligned, the distributor should also be aligned/timed properly. Is this an 87+ Ea82? (i.e. later EFI) It might be worth checking the distributor rotor to see if the set screw has fallen out. Unlikely that you would have a double failure, yet worth checking anyway.

As GG says, pretty easy to do. But that doesn't mean you will want to do it again real soon. Get the complete kit as advised.

Long answer: You have 2 basic paths to a broken engine. 1) buy a EA81 turbo vehicle and swap most of the drivetrain, the engine crossmember, much of the exhaust system, much of the wiring harness, and most/all of the fuel system. 2) Build a custom setup. Option 1 needs all of those bits because the EA81T engine is multi-port fuel injected, with special heads to hold the injectors. It is impractical to do multi-port FI in a standard head. Most of the mods are needed to support the FI. Option 2 would probably involve either a carburetor or single-point FI, either in blow-through or suck-through form. The standard turbo used on the Subarus does not support suck-through. Blow-through requires sealing of the throttle body, and a backfire into the intake system can cause major damage. You will still have an engine that cannot tolerate much power increase, both structurally and cooling-system wise.