Recently sold my '98 Outback. It was a lemon. Replaced the alternator at 60k, repaired a horrendous front main seal leak at 90k, renewed the clutch at 110k and found a bent clutch fork -- this had worn out the first gear synchro. The original engine finally bit the dust at 120k when the thermostat stuck shut -- repaired it but it wouldn't drive a mile before overheating after that.
The 2.5 DOHC 4 valve engine had good torque and climbed hills well, but it was not for off-road -- the clutch is too weak, gearing is not right and there is no clearance. The overhanging nose on that thing will not even allow you to drive the car up on ramps.