"If your engine cranks normally but will not start because it has no spark, or it stalls and won't restart because it has no spark, the problem may be due to any of the following:
A bad pickup inside the distributor (on engines that have a distributor), a stripped distributor drive gear (common problem with plastic distributor drive gears), broken, loose or corroded wires from the pickup to the ignition module or PCM.
A bad crankshaft position (CKP) sensor (on engines that do not have a distributor), or broken, loose or corroded wires from the sensor to the PCM.
A bad ignition module (on engines that have a distributor or use an ignition module separate from the PCM)
A bad ignition coil (on engines that have a distributor and a single coil)
A bad rotor or distributor cap (cracks or carbon tracks that are allowing the spark to short to ground)
Faulty ignition switch
For solutions go here: http://www.aa1car.com/library/no_spark.h..."
You're in luck, I'm a Subaru technician! Use a noid light (available at auto parts stores) to see if your injectors are getting an injection pulse, if they are and you don't have spark, check the ignitor module (mounted on the firewall directly behind the engine, small black box marked "ignitor" secured to the firewall with two 10mm bolts) and the ignition coil (on the top center of the engine, under the black plastic cover). If you aren't getting an injector pulse, check the cam and crank angle sensors. The cam sensor is on the driver's side cylinder head, it's secured with one 10mm bolt, the crank sensor looks exactly like the cam sensor, but it's mounted in the center of the front of the engine, above the crank pulley, underneath the alternator. Also, Fred you must have a 92 Loyale as the Legacy uses distributorless ignition, and as such does not have a distributor (unless it's a Japanese 1.6l model)
Check your timing. I just recently had this problem with my '93 Legacy. Was getting spark from 1 and 2 (the spark from 2 was weaker than from 1), and nothing at all out of 3 and 4. Got a new coil, same story. Got a ignition module, same thing. Checked every sensor and fuse I could, they were fine. When it all got down to it, one of the timing belt idlers had worn out and broken making the car jump time. Replaced the idler and the timing belt (the old one would've worked, but it was cracked in a few places so I decided to replace it while I had everything opened up anyway since it'd just be a matter of time before it needed a new one anyway) and the car fired right up.
I had this happen with my 1992 Legacy wagon. Replace the distributor cap, and if that doesn't work, replace the gas filter. They're cheap and easy, so I would do both.
