Gentlemen, thank you all for the input to this problem! Based on the the above, my thoughts are to remove the pan, check for debri and bomb damage, especially the band mentioned, Check the filter and if need be replace it. If problem is large and obvious, I will go with the idea of salvaging a tranny and replace in whole,
On that thought, is it possible to think about replacing it with a 5 speed manual?? Rather than another automatic?? I know in the case of older US muscle cars there are a number of issues faced on that journey, mounts, cross members, etc. and I doubt there is a large aftermarket network for aging Subarus.
Just for the record, the car has fairly low mileage, 86,000 km or 56,000 miles. No check engine light or AT blinks on start up.
Again, thanks to all with the ideas, I will keep you posted.
Aufwiedersehen!
kcg