2000 Subaru Outback Coolant Problems

Ok you need to find out where the coolant is going it is going somewhere. I would say you need to have a good shop do a leak test to see if you have a head or head gasket problem where compression is getting into the radiator. If there is not problem there then the coolant system may not have been burped out all the way meaning there are air bubbles trapped thoughout the system and it is not completly full. Let me know what you find.

Wow: You were right on target. I was praying it was the air bubble in system, but the shop states the Head gasket on drivers side leaking (compression test).
The next problem is the $2300 estimated to fix. While i dont doubt that is what is necessary for a shop to stay in business.. that is a lot of cash for a head gasket.

I've done gaskets on older V6's, 8, but never on a horizontal engine. They state the motor needs to be pulled in order to get the heads off, and then the heads have to go to shop for machining. (if you measure the compression drop only on one bank, why would you send both heads to the shop?)

Ok here is the brake down of it all. $2300 sounds very high to me. Yes you do pull the engine to do the gaskets because it will take a lot longer in the car. Now I usually drop it out the bottom buy dropping the complete sub frame it is faster and I work on it there. Doing both head gaskets makes sense because it is out and the other may not be far behind, and if goes later then you are in there again for about the same labor. Now as for the cost of it all it should cost about $680 in labor to do both head gaskets, now you do not need to rebuild the heads they just need to be pressure checked for cracks about $60 and then if there are no cracks check for worp and shave if needed aout $45 per head. As for parts the head gasket set is about $220 and then timing kit (you are already to this point so no extra labor just parts) at $91 and the front seals crank seal $12 and the cam seals at $6.99 each and check the water pump as you already here so labor should be very little if any extra at this point $50 and then the fan belts about $15 each there are three and radiator hoses about $15 each there are two and anti freeze at $12 a bottle may need two. So with that worst case should be around $1300. So I would call around and get prices and ask what they are doing for the money if they are doing a valve job then ask why unless there are burnt valve and at 72000 I doubt it then move to the next place. Now on a suburu dont go to just any shop pic one that has experience with them ok. Hope this helps and if you need anything else or have any more question just ask. Thanks.