Burning over a quart of oil every two weeks

Have you checked the oil,checked to see if dipstick and fuel cap are tight.Do you have oil spots on driveway? Those are the first things I would check,if oil is on driveway is it coming from the oil pan.It 'seems" it May be tied in with the oil change from 2 weeks ago

the smell could be oil leaking on to the exhaust from the rocker covers.(common problem in Subaru because of the side mounted pistons. Engine stop oil leak might fix other wise will have to get tappet cover seals replaced as they crack over time from the heat) easy enough fix. a tell tale sign is signs of engine oil stains or signs of oil dripping on to the exhaust(can locate by looking under the front of the car at the bottom of the engine itself) and this is probably the cause of the engine knock due to low oil.it will continue to leak till the problem is fixed

the low cost fix would be to use an oil additives. I recommend lucas from experience with a few oil burning subarus I have owned. The link is for the high mileage formual as I found it worked better. http://lucasoil.com/products/engine-oil-additives/high-mileage-oil-stabilizer

never-- I repeat never --use a used car dealer to do repairs on your car
The people employed are seldom qualified mechanics and they only know how to "bodgie" jobs just to get the car ready for a sale
oil will not leak from a head if the engine is running well , but oil will leak from faulty rocker cover gaskets
from your description, I suspect that when the car went in for the head gaskets a clapped out motor was fitted instead ( check engine numbers on the papers )
If you need a motor , there are plenty of good engines from japanese
engine importers
But at best do not have anything to do with that shop as the engine rebuild could be changing the engine back for your original motor

WHITE smoke? Or BLUE smoke? White smoke is usually caused by burning antifreeze (possible blown head gasket). Engine oil burning causes a bluish colored smoke.

Changing the oil two months ago means absolutely nothing to me. I have customers that travel 6000 miles or more in a month. Oil consumption is measured in volume over miles, not volume over months. It is normal for most 4 cylinder engines to use a little less than 1/2 quart in 1000 miles (even more than that for 6 cylinder and 8 cylinder engines).

hi if its using oil and its not leaking, it has to be burning it or seeping through to the water via a worn head gasket, check the water for any signs of oil and other way round. Then check for smoke from exaust as i know these motors can burn rings out really fast in some cases if thats the case it will need new rings

check your coolant might be a head gasket issue!

the oil sensors tell you lots of things so yes it could be because you're burning up the oil. i would try putting in a bottle of Lucas it is thick and it should help you burn less oil. it is a full quart so don't over fill.

The ticking lifter on the Loyale is a common problem. There's a small o-ring between the cam tower and the head that, after so many hundreds of thousands of miles, would "fail" (not to a dangerous point) and the lifters would be partially starved of oil. It's not THAT serious... they can go hundreds of thousands of more miles like that. If you replace that o-ring, replace it with a spring reinforced ring so it doesn't fail. Those can be found at wwwdotthepartsbindotcom. As for the Legacy... those early 2.5s were cruddy. I've seen alot of them throw rods, lock up WAY before they should have. Best bet would be to replace it with a slightly underpowered but bullet-proof early model Legacy EJ22 or go with a newer EJ25. I would just go with the 2.2L.

if your not getting any sound at all, it means it is your ignition, and by holdin the key you are probably jumping the connections.

Replce the ignition and your problem will go away.