One problem related to automatic transmission torque converter has been reported for the 1997 Subaru Legacy. The most recently reported issues are listed below.
Crank seal leak is a fire risk. Oil drips along oil pan and onto y section of exhaust where it burns. This is a common problem with Subarus with 50k miles. Although torque converter bind is not directly a safety issue, it is too common among Subarus with > 50k miles.