So I have gotten a few steps forward on the subaru.
Heres what I've done:
Reconfigured hoses (pas. side head to filter, drivers side head T'd to pcv and 3/8 hose to filter);
Retimed to 20 degrees, adjusted afm and idle to spec (afm screw about 2.25 turns out, idle at 800);
Idle was super rough and figured out it was the egr stuck open, so I disconnected it by capping off the port on the manifold (is that enough) smoothed right out, but the idle screw needs to be backed almost all the way out to get it to 800;
Now the dieseling is very intermittent instead of constant;
Everything is great now, except for intermittent dieseling, but one thing. Now that the car runs quieter, I can here a slight knocking sound coming from the engine at idle. Could I be a tooth off when i put the dizzy back in? Is that sound pre-ignition or rod knock? The engine has maybe 10-15 thousand miles since rebuild. The guy before me had purchased the car from a local subaru rebuild shop.
Thanks for the help folks.