had the dealer check the problem, they pulled the valve cover and said the valves had 0 clearance. definatley a valve issue, but it could be a burnt valve, or a dropped guide, not sure. they claim they need to remove the heads to find out.
car has 55,000 miles and this should not happen to such a young engine.
anyways, dealer quoted thousands to fix this, trying to get quotes from independant shops that know subarus.
any input would be appreciated.