You can get a good used rack for $100-$200 from places like F and S auto (
http://fsautoparts.com) in Connecticut (they specialize in Subaru) and there is even a used rack from a 94 on eBay right now for cheap money:
http://cgi.ebay.com/ebaymotors/Subar...Q5fAccessories
You could also try for more local used parts on car-part.com. Resealing the rack is a lot of labor on top of the charge for taking it out/putting it back in, but might be the best option other than a new or reman rack.
Could just be the steering u-joint needs to be greased up like crazy- my 96 Impreza OBS had a VERY heavy steering wheel when slow, and lubing up the u-joint worked a treat.