It's been quite awhile since I've updated this journal, so I figure it's about time for an update.
First off, the engine was "repaired" "under warranty." Long story short, the dealership approved the repair and I actually contacted Subaru of America to open a case or file or whatever they called it. Neither SoA or the dealership could 100% assure me that the warranty would cover this, but both sides said that they'd let me know if I had to authorize the repairs. As it turns out, the day my car was being finished up the local SoA rep showed up, saw the downpipe, and instantly voided my warranty. The dealership being agreeable, they covered the repair under good faith. However, I ended up having timing belt-related noises that were due to worn parts and the dealership not telling me of such, so I ended up with 2 new timing belts, 2 new smooth rollers, and a new tensioner. After speaking with the dealership owner, I only ended up paying the price of the tensioner itself, as a failure on the dealership's part to inform me the tensioner was worn led to the rest of the issues. They also totally destroyed my Fumoto valve for my drain plug, which they also paid for a replacement.
Now, even after all this, my car still burns oil. After my experience at this particular dealership, I'm betting it was either an improper break-in (only drove ~200-300 miles before the next AX) or an error during reassembly. After all the hassle I went through after the "repair," I'm being more the latter than the former. I didn't bother to complain to the dealership about this. They were nice enough to cover the repair after SoA said no, and I don't trust them after all the post-repair issues, anyway. I'm burning roughly 1 quart per 500 miles. Absolutely stupid. Thankfully, as long as I monitor the oil, it seems to run alright.
On the racing front, I ended up winning my class in my region. I'm hoping to do it again this year! The first event is 3/4 and it's looking like I'll have some stiff competition with more experience... A fast-as-hell Evo, a turbo Miata, and a guy that bums codrivers and can drive the wheels off just about anything. Sounds like fun.
As a result of the engine, I've been speaking to several shops and have more or less settled on the path I want to take. I toyed with trading/selling the STI, but nothing else I'd consider right now thrills me as much (E46 M3, 335i) and/or needs more TLC than I'm willing to give, or is less than ideal for DD/track/AX use. I'm planning to use a shop in Atlanta that recently started building motors, and another shop to do the swap. Both work hand-in-hand to provide affordable packages for their customers. I actually took some time the week after Christmas to drive to ATL and visit both shops. I have a good feeling about the engine builder and the shop, just need to set aside some $$$, first. While I'm at it, I'll be doing the following:
1. ACT HDSS clutch
2. ACT Streetlite flywheel
3. Killer B baffling/windage tray
4. Killer B oil pickup
5. Grimmspeed 3-port EBCS
6. DW200 fuel pump
I have all but the last item sitting nearby. The engine will be a "basic" forged block, with the newer OEM crank and oil pump, custom-spec forged pistons and rings, King bearings, and all OEM gaskets. The builder also recommended the 2.0 water pump, as he says it won't (or is much less resistant) to cavitation than the 2.5 pump.
I also installed a Grimmspeed-knockoff AOS by S2 Industries (ebay). It's identical to the GS piece, and seems to do a decent job filtering the blow-by. To make monitoring easier, I installed clear reinforced PVC hose versus the included black "standard issue" heater hose.
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