Engine Noise Mystery..
The mechanic who worked on my Subie today found that the previous owner who neglected the car, drove with wrong size tires on in the back (smaller than recommended) which had caused damage to the transaxle/transmission causing this engine whining noise coming from transmission. Unfortunately it's been going on a for a while..so the transmission is probably damaged. When I bought this car it had 2 different sized tires in the back much smaller than normal Outback tire. Going to find some new tires and see what happens with the noise. He says we can take out the transaxle and have a look at it, service it and hope for the best. Otherwise, the next step would be to replace the transmission. :-( Not excited about that idea since transmission died on my -97 recently which is why I got this new -99 Outback in the first place. It will be hard to sell this car with a whining noise coming from the engine though.. So I guess I will drive it as long as it stays alive.