I have a 1997 Subaru outback legacy

I wouldn't. Too old to invest $2000 to $3000 on a rebuilt engine when you're gonna have other things breaking down due to old age but it all depends on your budget and personal preference

What seals are those? If you like the car and the rest of it is in good shape you could get another 200,000 out of it by replacing the motor. Of course there would be other repairs along the way.

NO for two big reasons: too old to resurrect, and its archaic DOHC 2.5i is a VERY fragile motor that spontaneously blows HGs internally AND does NOT suffer a rebuild with reasonable continued durability. Replace with older simpler 2.2 SOHC? No also, as you'll be pissed off at the lack of power to move the heavier driveline...and inherit more leaky seals. The only reasonable solution MAY be to sandwich in a 2000+ SOHC 2.5 with clean gaskets...but I don't know if it'll fit. All '95-99 OBs are in graveyards up here....

Well, shoot. I just had a rebuilt put in my 1999 Subaru Legacy GT Wagon, and she only had 150,000 miles on her. I wish I had read this a week ago. I believe you- don't know you, and I'm a female but you make perfect sense. darn it....

$2000. is cheaper than $20,000 for a new one Im thinking of doing the same for my 1997 outback wagon - its a GREAT vehicle. Even if I only use it for a second vehicle, its cheaper than a new or even old one that I won't know WHAT problems its had/having

I tell my clients that if keeping their OLD chariot costs more than $1.5-2k per annum it's better to get a 3-5 yr old in excellent condition, as that cost equals the depreciation rate; so you might as well be driving a far better (newer) car. Especially with 1996-1999 Outbacks the risk of VERY short ongoing ownership vs cost per month of ownership is extremely onerous. That motor is a time bomb, and your tranny is 20+ years old!

I’m in that boat right now, got a 97 with 320,000 miles on it, 2nd owner! Taking chances with a relatively cheap high mileage replacement, or fixing the beast whose vices I know! Certainly not a showboat, but a blacksmith anvil that does what I want!