Looking at non-turbo Outbacks in the early years of the 4th Generations like 2003-2004.
Manual is a must so no need for advice there. What’s the engine choice I’d most want to look for?
Of course I’d be OTLO for recent head gaskets and/or timing belt and water pumps on whatever I’m looking at.
Flat six for noises and “better than 2.5” head gasket issues.
They are heavy granny cars. But can be buffed up.
Definitely get the flat 6 if you can (although I don't remember if you could get the 6 with a manual from the factory, you might have to swap it). More power, better sound and it's a better engine anyway.
My brother always bought manual-Outback wagons and drove them like appliances until they had 300,000 miles. Never heard a complaint.
Theres one with an automatic sitting in my shop right now.
One owner car.
Exhaust sheilds rattle, electrical system is possessed, radio is dead, seat heaters dont work, and it is a miserable piece of equipment to spend time in.
My 2002 legacy 2.5gt was much better in every conceivable way.
Which generation are you talking about? And are you talking about a Legacy or an Outback? The generations don't match up. I'm assuming you're talking about the Legacy generations, as the 4th generation would have started in 2003, but for Outbacks they didn't get that body style until 2005--and that was the 3rd generation.
I have a non-rusty 2006 manual Outback XT project I'l sell you cheap for for $1000. 
My mom's 04 Legacy was on it's 3rd engine when we sold it. As I understand Subaru tried using very short piston skirts to increase mileage, and they had bad piston slap.
That being said, Subaru ponied up and replaced BOTH engines outside of warranty (issue was documented before warranty expired) at Zero cost to my mom.
This was a 2.5L but the 3rd engine was motoring along quite well. It was sold because Mom couldn't drive any more.
I would buy either engine - however I don't think you can get a 6 with a stick.
In reply to Brett_Murphy :
Should I ask?
I picked it up as a project in partially disassembled state. I've reconsidered "Turbo, AWD, Manual Wagon" as my kid's first car.
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