Muffler hole at the lower bottom is normal,i think it will be something else,please check the downpipe to the middle resonator,u might can see something wrong ^^.gd luck
Its possible, but usually what you smell inside the cabin is coming in thru the fresh air intake in front of the windshield. The source is usually in the engine compartment.
SOURCE: cabin air filter on a 2006 subaru outback limited
The cabin air filter is behind the glove box. The first thing you need to do is empty the glove box. (2) you need to remove the side panel that runs along the side of the shifter, it is a long panel and has on clip near the firewall, the clip will have a phillips head on it, just back it out and remove this panel. Then remove all the bolts (10MM) holding the glove box on, The glove box is will stay up because it has two hings that run into the sides of dash. All you need to do is squeeze the glove box untill it pops out and the glove box will be out. There is no need to unhook the wiring for the light bulb just let the glove box hang on the floor. Now you will see a black cover that is held on by 4 small metal clips, remove these and pull the cabin air filter out. when you reinstall the new one, make sure you put it in with the air flow arrows pointed in the right direction or else you will cause blockage. reinstall and enjoy your new heppa filter
SOURCE: 2005 subaru outback cabin air filter install
Yes the o5 outback has a cabin air filter and it is located behind the glove box. You have to remove the glove box, once you get it out of the way you will need to remove the 4 metal clips that hold it in place and make sure you put the filters in with the arrows pointing in the right direction for air flow. Other wise you will have restriction through the vents
SOURCE: Power steering pump replacement for Subaru Outback
REMOVAL
SOURCE: Schematic of exhaust system
http://www.autopartslib.com/search/subaru+outback+1998+exhaust+system+diagram
SOURCE: How to change cabin air filter in a 2003 Subaru
Your cabin filter is located behind the glove box.
First you will need to remove the glove box. Open the glove box, and on the left and right side on the inside, there will be a retainer that you will need to pull out. This will cause your glove box to fall forward, exposing all of the screws. Unscrew the 10 screws around the outer edge of the glove box, and pull the unit down and out of your way.
After the glove box is removed, you will be able to see the HVAC casing. You will see the access door to the cabin filter, held in with some clips. Disconnect the resistor connector that is in your way, then remove the four clips in order to access the filters.
Once you pull the filters out, you can install the new ones in reverse order. Make sure that the arrows on the filters are pointing up, and that the door is sealed properly when you close it back up.
Good luck and please let me know if I may further assist you.
-TXTEXAN
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Thanks for your comment Stephen. What in the engine compartment could be causing this and how much might I expect to pay to have it fixed? Could it be a leak in the exhaust system?
Could be a leaking exhaust gasket or crack in a pipe. Being close to the engine it should be fairly loud. Cost would depend on your local area. The smell could still be the muffler but generally the fumes would not get into the engine compartment especially when the car is moving.
I will add that I believe this may have happened because I was backing up into a large snow bank at the end of my driveway a number of times to get out into the road... The exhaust smell started after that...
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