I would replace the thermostat. I had overheating probs in my SVX, replaced the thermostat....and bam no overheating problem. They are cheap as hell and easy to instal. It would be worth at least buying one and putting it in to see if it works before you scrap or rebuild the motor.
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1994 Subaru Legacy L-6 FWD 5-speed
EG33 powered
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