So the Legacy turned out to have a cracked head and a missing rear diff (yeah, missing), so I threw some leftover parts together and created this beast:
The rims are from a VW Cabrio (I think), the suspension is stock Tercel struts, with steel mount plates and $40 eBay coilovers, adjusted all the way to the top.
Amazingly enough, sitting 3" higher than stock it's really stable and err... even lands nicely after catching some mild air.
It's getting quad 7" Hella rally lights, fat red mudflaps and chewy snow tires...
If it proves to be reliable, it's getting caged in the spring.