One problem related to transmission noise has been reported for the 1999 Subaru Outback. The most recently reported issues are listed below.
Only three months after my purchase the car developed a noise. I took it to my mechanic who recommended replacing the clutch release bearing. I was shocked that this piece had gone bad so early, and I couldnã‚t understand why. I authorized the repairs, and as they began working on it they discovered why it had gone bad prematurely. One of the clips on the clutch release bearing had broken, causing the bearing to sit crooked. This then allowed the clutch release bearing to wear a groove on the snout that the bearing rides on. The bearing was then getting caught in the groove, preventing it from releasing fully. I not only have to replace the bearing and the clips but also the entire transmission housing because the snout is cast into the housing.