One problem related to blower has been reported for the 1998 Subaru Outback. The most recently reported issues are listed below.
In rainy conditions or when using the defroster, the vehicle smells like mildew came through the vents which caused occupant not to use the defroster. May cause visual difficulty, and may result in an accident. In cold weather the trapped moisture in the system causes ice to form inside the windshield making driving impossible. Mildew and bacteria are strong enough to cause wheezing and burning eyes. Dealer/manufacturer have been contacted but provided no help.