One problem related to engine burning oil has been reported for the 1998 Subaru Legacy. The most recently reported issues are listed below.
Sunroof drainlines were repaired twice, due to leakage, dealer believes that the windshield installer caused them to be disconnected. Cv joint leaking due to freeze plug in the cv joints, replace but leaks worse. Installed a battery hold down, top defroster line repaired twice, smell of burning oil.