I have a '92 Legacy with EJ22E engine (138K mile) and have noticed some buring oil smell since I bought it. Recently it has gotten worse and I have noticed a string of oil that drips laterally towards the rear of the engine and see some oil drips on the oil pan, filter etc. near the lower rear of the engine. No oil to speak of around top, front or sides of the engine.

Anyone have any insight for me?

Don't know if it's related, but occasionally when I crank the engine (cold or warm it seems) there is a clunk/thud noise and then the engine starts only with fairly heavy throttle applied. It then runs rough for a minute or two before smoothing out. Talked to a local Subaru guy and he suggested that could be alleviated by giving about an 1/8 of the throttle each time it's started. This works most, but not all of the time.

Any clues?

Thanks in advance.

Most likely the leak is coming from a degraded gasket, probably valve cover gasket. They never seem to leak where you can see them but usually in the back. As far as being related to your starting problem it(the oil) could be leaking/blowing on/into your fuel delivery system somewhere. Maybe,somehow, into your air intake and into the throttle body. As far as the advise from the Subaru guy. I think I'd be looking for a new one. It's like a Doctor saying" have you ever had this before? Well you've got it again". And then charging you for this great information.

I have a '92 Legacy with EJ22E engine (138K mile) and have noticed some buring oil smell since I bought it. Recently it has gotten worse and I have noticed a string of oil that drips laterally towards the rear of the engine and see some oil drips on the oil pan, filter etc. near the lower rear of the engine. No oil to speak of around top, front or sides of the engine.

If it is running down the front of the oil pan, it most likely is the front oil seal. Mine did the same thing for a long time until I couldn't take the oil smoking anymore. I had a shop replace it at 84,000 miles, but it needed replacing again at 108,000 miles. I did the second replacement myself and it has been fine at 136,000 miles on the odometer.
http://memimage.cardomain.net/member_images/6/web/618000-618999/618555_51.jpg http://memimage.cardomain.net/member_images/6/web/618000-618999/618555_52.jpg
http://memimage.cardomain.net/member_images/6/web/618000-618999/618555_53_full.jpg

Similar problem could be on the cam seals as well. Oil pan gasket is a possible leak source - but I would be surprised if this is the problem.