I have two problems with my Terzo. (Only mods, Scoobysport exhaust and Ram air filter)

1. At 5,500 miles the car has developed a fault. The car has started to lose what feels like all power every now and again. Once the power has gone then the engine seems to right itself and if you keep you foot down as the problem occurs then you end up bunny hopping down the road. The problem does not happen if you accelerate hard through the gears and never happens in 1st. This problem seems to be most prevalent if you try and accelerate in 2nd or 3rd and occurs at about 4,000 revs although it has happened in 4th and 5th at low revs. The car is obviously under warranty, so I will get the problems sorted out, but I would like to know if anyone else had had this problem.
2. How do you get the back seats to fold down on the Terzo. I had the 1996 Impreza which had the two tags on the back seats.

Sounds like the problem with some cars where the ECU detects too much boost and momentarily dumps excess boost (seems like it is shutting down) to protect itself. Dealer should be able to fix it OK under warranty.

The rear seats on the Terzo don't fold down, despite what it says in the official brochure http://bbs.sidc.co.uk/frown.gif

Yep, Its the wastegate selanoid that is clogged up with oil... have you just had the car serviced. Because the selanoid is covered in oil it mis-reads the boost level on the turbo and shuts down the fuel system. If you try pushing hard enough it feels like you've just hit something. It happened to me in the middle of an overtaking attempt and scared the SH*T out of me.

My MY97 recently had the same problem after a service.. The dealer filled the oil to the correct level (which subaru now say is too much)

The dealer can sort it in no time.

Non-folding rear seats saved my Terzo from being stolen.

One morning recently I realised that the boot was ajar and I thought I must have forgotten to shut it the previous night. Then I saw the two muddy size 11 footprints on the rear of the seatback. After making an arse of smashing the passengers doorlock and failing to gain access to the interior of the car they tried (with great ease) to open the boot lock and kick down the non folding back seat.

The irony of it is that they moved aside a £7,500 telephoto camera lens to get a better kick at the seatback!

Needless to say there is nothing left in the car overnight anymore and it's not parked on the street. If you have a standard turbo with folding seats then cross over the rear belts to make it harder to kick it down.

Thanks IM.