My Subaru Legacy 2002 was recalled for a transmission problem in 2003. This was repaired in Feb 2003 by the ca dealer where we purchased the car. In June of 2003 we were transferred by the us coast guard to Virginia. On May 12, 2004 I noticed a strange wheel noise and took it to the Subaru dealer in the area for diagnosis and repair. I was told later that the brakes were only 50% worn and that all of the fluids were ok. I was told to pick up my car that night as everything was fine. The paper work given to me when I picked up the car stated " checked front and rear brakes; 50% left; heard some front differential noise; checked fluids; checked ok." By May 20th the noise was extreme and I met with the mechanic the next morning. He instantly diagnosed the problem as the differential. I was told that a part would have to be ordered and I informed him that the car was under warranty. On May 24th I was informed that the cost of the repair would be approximately $3500 as a new transmission was needed and that the warranty would not cover unless I produce all of my service records. We authorized the work to be done as this car is our only transportation. My concern is that there is a serious problem with the Subaru transmission for the 2002 Legacy model. I have also heard of a woman who had recall transmission work done and then drove to new england. When she arrived at her destination her car had problems. What was uncovered was that the recall had been repaired with used parts and had failed! is this a common practice with Subaru? we have spoken with Subaru America at their 800 number and were told that they would not honor the warranty unless the service records showed that all services had been performed appropriately. We are in the process of locating these records but are very unhappy with Subaru's attitude regarding a car that is only two years old and is in need of a new transmission.

- Chesapeake, VA, USA