Thanks for the leads everyone.
Mike - good idea on swapping the heads l-r and trying the leakdown to see if it follows the head or stays with the piston. I might try that this evening. (BTW the stuff is way out at Eric's house, probably farther than you are willing to drive just to look at them)
No oil leaks or head gasket problems evident at
all unfortunately.
I might pop the piston out this evening to look at the rings. Luckily this is easy (supposedly) on a Subaru. We'll see...
<edit> I didn't take the piston off but did pull the other head. Here's a link to a bunch of photos:
http://forums.nasioc.com/forums/showthread.php?t=1194980</edit>
BTW, Subarus ROCK. The design is incredibly easy to service. The manifold comes off with 8 bolts and ALL the fuel/emissions lines +engine wiring comes along.
--Kevin H.