At approximately 90,000 miles I started to experience binding in slow speed turns. At times, the car is difficult to control while turning. The problem, as described by others who have experienced the problem, is that a bearing or seal wears a groove in the aluminum extension housing. This groove causes a pressure imbalance within the transfer clutch and, as a result, causes the binding problem. The resolution is addressed in a technical service bulletin (I currently don't have a copy of the bulletin at my current location) and basically says to check the duty C solenoid, transfer clutch and replace the aluminum extension housing with a steel reinforced replacement part. I contacted Subaru of America on 10/2/01 and received the following reply on 10/8/01: Thank you for your recent E-mail to Subaru of America, Inc. We appreciate you taking the time to contact us. We are sorry to learn of the difficulties you are experiencing with your 1996 Subaru outback. Our records do not indicate that there are any service programs or recalls regarding this concern. Service bulletins are provided to dealers in order to explain the operation of a certain component of the vehicle or to provide some feedback as to tests or repairs to perform on a vehicle if it comes in with a certain concern. They are solely for informational purposes and they are not an indication of an upcoming recall or anything along those lines. If you have any further questions, or should you need further assistance, please do not hesitate to contact us at Subaru customer/dealer services at 1-800-subaru3 (800-782-2783) and refer to case number xxxxxx. Thank you for the opportunity to be of service.

- Downingtown, PA, USA