Alright, I'm new to Subarus. I took my month old 2005 WRX wagon out to the track on sunday with a few guys from work. On my second session, going into turn one, I downshifted about a second too early. It sent the RPM's to about 8500 (when I glanced down, it was dropping below 8k). When I was accelerating out of turn two, I noticed a signifigant drop in power. Then my instructor and I noticed a ticking. I babied it the rest of the way around the track and took the exit road. About 20 feet from the end, it died.

I checked the oil and saw a VERY fine sparkle. We pushed it back to the pits and started troubleshooting. I could still turn the motor pretty easily with the crankshaft bolt. There was one spot where it seemed unusually stiff. Unfortunately, I didn't know the other two guys there with Sube's and was stuck.

After towing back to our shop, I drained the oil and tried to strain it. Nothing would catch and of the sparkles. It was almost like a powder...

I went to drain the coolant (in preparation of pulling the engine) and realized that I needed to pull the headers. On the driver's side, I noticed some oil on the head to manifold gasket. Not good.

About this time, I noticed the time and decided to go home (I have been catching a lot of flack for being late, and I NEED a job to pay for this). This is where I am...

I had a few people tell me that it sounds like I spun a rod bearing. One person told me that it could be a valve. I even heard that it could be a valve-guide seal... I figured that I would ask people that know these cars... Anyone ever go through this? I'm an average joe who doesn't want to yank everything apart if I don't have to...

I forgot to add, I have (had) stock internals. The only upgrades are Turbo XS manual boost controller (15 PSI), Turbo XS BOV, SS headers, up pipe, down pipe, exhaust (all the way back), and an STI intercooler. I changed the fluids that morning and was running fresh synthetic. I wasn't running hot at the time (I looked on the front straight). Maybe this will narrow down any hints...

 

We tried to turn the car over at the track, but it looked like it wanted to jump out of the engine bay... I figured that it was best not to do that again...

 

A dropped valve could explain these symptoms. Bad luck

 

I pulled the motor tonight and can't wait to tear into it tomorrow. I need to get some sleep. My boss hates it when i show up late...