Well finally got the '99 Forester back from the dealer today with a new center differential. Total cost plus four new tires -- $1,600. A few things. They told me the gasket seal failed and when they opened the thing up it was full of rust. Whether the situation was the result of the torgue bind problem or not, they weren't really sure. However, they did say the tires were just on the cusp of being outside the required
1/4 specs. I have to say the car rides a lot smoother now, however that may be because I got used to the s--tbox Chevy rental they gave me. I'll take my Forester with its 98,500 miles over that Chevy which only had 5,000. BTW: My car is a manual and they said that the center diff. seldom fails in this way on manuals.