I have an '88 DL wagon that's been through it all (motor rebuilt at 250k and general condition is amazing - I brought it from Portland, OR). The one issue is a small crack on the top of the engine block (common in the E81 model engines). It has been JB welded a few times and, while before, the temporary weld would last over a year, now it is proving difficult to stay sealed. I am seeing two options: 1) sell it to someone on this forum who would love a classic Subie to rebuild/ do an engine swap or 2) figure out a way/ find a person/ brave soul to permanently weld the crack for a modest sum. This car has some sentimental value with me since we've been through a lot together (and a lot of $$) so I'd like to find a way to fix 'er up (since also I will not be surprised if she goes past 300k and beyond with proper TLC). Ideas?!
Swap in an EJ22e. Otherwise you could possibly find another EA block. There are some accomplished welders around the forum as well. Let's just say, you have options. No need to just dump the old gal off because of a crack.
I absolutely despise the EA82 engine, so, personally, I wouldn't put a single dollar into it. I'd grab something like this: http://minneapolis.craigslist.org/csw/cto/3697375319.html And throw the motor in your DL. You could sell off the extra stuff, and probably have the whole swap done for less than a grand. Completely worth it, IMO. AND, unlike most car modifications, this will actually add value to the vehicle, people will travel across the country for a well-sorted, rust-free EJ-swapped EA82 Subaru.