Unusual overheating issue

[SVX92-97]

I have an unusual and perplexing overheating issue on my 96 Polo. I had Tom K. reseal my engine and give me back AWD, which I never realized I was missing since I didnt drive it this past winter. Anyway, all new oem subaru parts were installed, WP, timing belt, thermostat, etc. Temp was normal from Toms house until I reached NYC about 300 miles and noticed temp gauge was almost in the red. I immediately pulled over and let it cool down. There was no overflow at all. Upper hose was barely warm, and lower hose was even cooler, and rad. cap was cold. I had two 12oz bottles of spring water with me and put those in, and drove the remaining 100 home to CT. Temp was normal until I pulled in my driveway, and the gauge spiked to 3/4 with both fans running. I shut it off, and noticed some antifreeze blew out from the reservoir tank and under the battery tray. I continued to drive it for the last two weeks to and from work, and each day I would add about a half gallon of water total. I have about a 55 mile round trip, and temp is normal for about the first 20 miles of driving to and from work, then the gauge will suddenly spike to 3/4 to almost hot and quickly go back down to normal when the fans kick in. When I pull into the parking lot at work and in front of my house the gauge is 3/4 or higher with fans running and antifreeze boiling over from reservoir tank. I spoke to Tom about it, and I went ahead and replaced the thermostat which was defective with another oem thermostat and back flushed the system and I still have the same problem. Also of note, Tom had overfilled my power steering fluid and it was running down my timing cover and beading off of the oil filter. Tom thinks oil could have gotten under the timing cover and on to the belt and maybe slipping. I am not sure what to replace next, but I am about to remove the timing cover and see whats going on under there. Also during all this, my power steering is virtually gone, I need two hands to turn the car most of the time, and especially to paralell park or even turn onto a street. Tom did change all the power steering hoses and replace the o-ring. He also replaced the rad cap which is 13lbs, cause he said my old one did not old pressure. All I know is I had none of these issues before the engine was resealed with new oem parts. I drove the car witht AC on all the way from CT to Reading and no issues. I either have extremely bad luck or bought a bunch of bad oem subaru parts or both. All I know is I cant even enjoy driving my car, and to top that off I just got a speeding ticket the other night at 2:30AM coming home from work, talk about bad luck right.