One problem related to transmission not go into gear has been reported for the 1997 Subaru Legacy. The most recently reported issues are listed below.
While traveling on a steep hill gear will move to another gear as if vehicle is coasting. Engine does not hold car when going down hills or stopping, had to decend a steep mountain road using only brakes, when slowing vehicle acts if though it is in neutral when in 0,3,2,1. New transmission cost $3000.