I believe the timing belt rounded out. The motor still cranks but I would not start it to prevent further damage. You could either repair the heads or get a running, tested motor from a junkyard for $150-$300. This is a clean, legitimate 65,000 mile Excel with no rust. Very clean, not spotless but incredibly nice for a 14 year old car. Five speed with a good clutch. This is the GS model with the little spoiler, tachometer, center console, rear wiper and other goodies. Fix it up and have a nice 40mpg daily driver, or sell it for much more than I am asking. $425 is what I need. Call (603) 455-8426 I am located in Belmont, New Hampshire 03220 Email Subaru360Lover@yahoo.com

I have it posted on Craigslist as well, click the link for pictures.
http://nh.craigslist.org/cto/958051447.html
Now marked down to 375.