Oil leak from front crankshaft seal (fixed when I replaced the timing belt at 61,000 miles) and just recently replaced the starter motor. Other than the above mentioned items, nothing else has been a problem.
Very dependable and fairly comfortable. The 2.2L engine has decent power and is OK on fuel mileage (average about 25 mpg). One thing I dis-like is that the throttle is very sensitive when starting out. It seems that the 98 and later Subaru's have this in common. You just touch the gas and the response is almost too much... Other than that minor quirk, the car has been very reliable and enjoyable. The all wheel drive is a big plus in the New England Winters and the reliability has been very good.
My parents bought a '98 Legacy from a family friend for my sister and me to drive and it is quite a piece. Yeah the throttle is a little touchy, but it sure is a great car. In fact, my father and myself went on a camping trip and we took that. While we were there our uncle got his big ford f-150 with 4 wheel drive stuck in a foot of mud and we pulled that big beast out with no problem. I will always stick with the Legacy and Outback.