QUOTE(Gigamight @ Jul 7 2010, 02:11 PM)
I have a guy that is selling a 96 Legacy L. It has a bad diff and bad tires, so he is selling it cheap or it goes for scrap. Would this be a consideration for an engine swap? My research tells me the engine is an EJ25D, which makes around 150 hp, does that sound right?
Since it is a Legacy L, it has a 2.2 liter engine (EJ22). Probably not worth converting your teener with this engine -- unless you're only doing it for mock-up purposes. It came from the factory with only 135hp.
Only the 1996-98 Legacy GT & Legacy Outback came with the EJ25D engine -- and those early EJ25D engines had poor head gaskets from the factory. The updated gaskets will usually cure the problem if the car hasn't been overheated too badly; if overheated badly, the engine/head surface can be warped and need surfacing to ensure a good seal.
The transmission (assuming it is a 5-sp manual) can be converted to 2wd using the Bremar kit, but that still isn't worth the $400 unless it has VERY low miles.