At miles 6729, the transmission burnt. Subaru will not install a new one. Forced me to accept a re-built transmission. The re-built transmission after 500 miles went bad also. It started locking up in reverse gear and when driving around the corners. The service department would not pay attention until I left the car at the dealership and threatened to sue under the Lemon Act. They finally called in the Subaru technical rep who offered to replace it with a new transmission if I was going to keep the car. I said, yes, got the new transmission and then traded it for a new 2005 Turbo model in April 2005. The transmission on Baja is very poorly designed. It's very noisy to drive.
All wheel drive is very responsive and pleasure to drive except the transmission problems.
If Subaru wants to continue manufacturing it, they must improve the transmission. Interior needs better insulation to cut-out outside noise. Gear shift needs improvement. It gets into easily into 3rd gear instead of Drive if you are not paying attention.