I'm seriously considering purchasing a 1997 2.5 GT with 98K on it. Is
> the head gasket problem over stated, or do the majority of these cars
> really suffer from head gasket failure?
From what I have seen and from talking to Subbie mechs, the 2.5 ltr DOHC motor in general has the problem, if you keep an eye on things it is managable however. I had one go on a 97 Outback, I may have been a little lucky in that it was only a small leak and did no other damage.
Cheers.
Pete D