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Subarus of that era love to rust. If it looks like Hoovie's Baja (search on utube) then get rid of it. But maybe pull that EJ25 motor to put in an old VW. The valve covers are probably leaking, and leak oil. Bad head gaskets (common on naturally aspirated EJ25 engines) usually causes overheating and Mountain Dew in the oil. I did the valve cover gaskets on the EJ255 (2.5L DOHC Turbo) in my SH Forester. What a PITA, no room! and had to loosen the motor mounts and lift the motor up cuz the valve cover hung up on one of the cam journal bearing caps when I tried to get it out.....
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