well my cruck made it back home and Subaru did what they said they would do.
Here is what all I got:
rotate tires and balance
Full HG job
Oil change (synthetic so I had to pay for some of this)
out the door: $910.xx
Basically subaru wanted me to pay $500 as a deductable. I gladly paid it but had the dealer do some of the other stuff while they were in there like the t-belt etc. I asked them to do the cam and crank seal but they forgot to do the crank seal. Oh well...in my head I just skipped my 105k service so as much as this sucked I really feel that I am going to come out ahead on this.
Lesson learned: I got the coolant flush done every 30k like they say you should and I got it done at the dealer. There is no way they can get out of standing behind a product when you do what is asked of the manufacture. They said I didn't service it regulary. I said I have an inch thick file do you want the recepts. They declined. KEEP YOUR RECORDS OF SERVICE EVEN IF YOU WORK ON YOUR OWN STUFF.
I really feel like I won a small battle. In the end though it is Subaru who will win... because they kept me as a customer and as a customer I will spend more money on their products now.