The codes seem easy enough to fix. The p0026 is the variable valve timing sensor from my research (not sure how bad that can effect things, but the name scares me), and I believe the other is an exhaust solenoid or something. I do have the skills to do most things minus engine work, and at the price I can get it for I can afford a timing belt job (it's due for it just about anyways regardless of the tensioner failing)
And no offense taken. If it's that bad keep it coming. I normally wouldn't consider this kind of deal but the car is in great shape and I can't find much on the market that fits every need I have like an impreza wagon, and options are slim out there right now. Craigslist is mostly scammers now days it seems...
What does the sound say to you guys? Is it that bad?? If it is please explain. I need logic to stop my ignorance. Also why do you say it will need a head gasket soon?