One problem related to brake disc pads has been reported for the 1999 Subaru Outback. The most recently reported issues are listed below.
In the morning, when I back up the car from my driveway, go forward and then apply the brakes, there is a loud, mechanical banging sound (like metal hitting on metal) coming from each of the 4 wheels - either the pads hitting the rotor or the piston hitting the pads which in turn hit the rotor. This also occurs when the car has not been used for 2-3 hours and the car is put into reverse, then forward, then the brakes are applied. Recently the banging sound is becoming louder - so much so that it attracts pedestrians' attention. The dealer said he could not find a problem. A Subaru regional inspector said there is nothing wrong. Subaru customer service told me to live with the sound/problem. I have spoken with other Subaru owners and they tell me they have similar problems and that Subaru does not acknowledge their problem. The car does stop, but I am afraid that one day the brakes will fail without any notice. . . . In addition the brakes are very, very spongy/soft. It feels like I am stepping on an air mattress - there is no sensation of stopping until the brake pedal of almost fully depressed. There is absolutely no feel/feedback when the brakes are depressed - I know I am stopping because I see the surrounding environment slowing down, not because I feel the car stopping. Consumer reports (Mar,2000) said "the brake pedal felt soft and not reassuring. We also experienced some moderate brake fade".