Lifting is fun
>>1. Should I get a set of struts and springs from a junkyard from an OB or Forester?
Not sure really, I would probably go Outback, since Foresters have a different upper spring seat and size in the front (but that should still work). (But don't go '95 Outback, those won't give any lift).
>> 2. If so, what years do I need to limit it to (I think I read from 1996 to 2002 OB)
After 1999 (and maybe 1999 can't remember) Outback, the rears will not
work since they switched to multilink rear suspension, completeyl different from the normal mcpherson style.
>> 3. If I cant find these locally for a reasonable price (less than $175 for the set), should I get KYBs and use the stock legacy springs? I have read that tirerack or ebay is the cheapest/best way to get these.
Tirerack is not the cheapest on these but they are ok. Best buys on GR-2's seem to be to find the set of four you want on eBay, as a set. Other people I'm sure will be happy to let you know where they got their best deal. You can get new Outback springs, even from a Subaru dealer selling parts online they're maybe $50 each or so.
The rear strut mounts from an Outback or Forester are probably going to be dfiferent than your '92 Legacy. Some people simply drill new holes in the rear for the strut mount, or disassemble and use your existing or new strut mounts for that style.
>> 4. Should I do any other inexpensive suspension mods when I do the lift/struts?
Can't really think of any; just make sure you inspect whatever strut moutns you are using, older ones can be weak or rusted out and you would want tomake sure those are good. The front strut mounts make sure they turn smoothly (i.e. bearing is not worn out).
>> 5. I have stock sized tires on the car, what should I get with a tired out 2.2 and an auto tranny? I am thinking I better stay stock, or close to, or I will loose a lot of power/gearing.
You will loose take off power if you go too large on the tire size. Also at certain speeds it will just feel like it is in too high a gear. However I have not found this to be a deal breaker. Generally I just use the shifter for 1, 2, etc if I don't like the gear i'm in.
For comparison, this is a similar thing to what you are thinking, that I did to my '96 Legacy (red). KYB GR-2 outback struts, king springs, and 225/60r16 snow tires: The '94 Legacy (white) is shown for comparison: