Check this thread: http://www.subaru-svx.net/forum/showthread.php?t=43744
Diagnosis from here: Yep, try the same place that Turbz went to in Sydney's south west (see page 2) if you happen to go that way. You've got a busted CV joint. Do them both while you are at it, save the hassle.
Replacing them yourself will take a day or more the first time, if you have some mechanical experience. Once you're an expert like myself and my dad (having owned several L Series wagons and several Outback and Liberty models) it can take a couple of hours to jack it up and have it back down with both done - provided that you have replacement ones ready to go.
As I mentioned, there are a couple of other things you can look at while you are under there, such as cleaning it up and check your pads. Might pay to get under and really check out all the steering that you can get hold of as well.
All said, it isn't all that expensive (not like a blown diff or something).
Good luck.
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