Cheers everyone for your thoughts and compliments.
The end result was the head gasket was weeping so therefore needed to be replaced and in the process had replacment heads put on. End cost was $2700.
Though what came next I wasnt expecting. When my mechanic put the motor back in and re attached it back the transmission he hadn't do something quit right and the next day from picking it up when i was driving it the transmission was playing up and wouldn't engage the gears. Auto trans by the way.
So I took it back to him on the saturday and on the monday he informed me that from his wrong doing the transmission was now f**ked and I was getting a BRAND new transmission for nothing $3500 worth.
Something to do with the pump not working therefore not pumping fluid around the transmission.
So all in all the car runs fantastic now. Feels like what the car would have felt like when it was new.
Decided it was time to de-badge the car. TOO many badges on these Outback's. All has gone well apart from the Outback badge on the back leaving this behind for me to figure out what to do with it.
Any thoughts anyone?? I have bought a Lancaster Badge to go back over it but it doesnt cover it completely.
Came across this in my trade school car park last week. Had a good laugh with my mates. Though the sticker bombing was done fairly well.