One problem related to brake grinding noise has been reported for the 1997 Subaru Legacy. The most recently reported issues are listed below.
Brake rotors would be pulsating when brakes were applied. Vehcle would start to shake. Brakes would make grinding noises. Vehicle failed to stop like it should when brakes were in use. Would need to drive slowly (40mph) instead of 60mph to stop vehicle from shaking. Taking vehicle to dealer to check.