Ive done this on my previous forester, the 1998 NA SF5. There is NO PROBLEM fitting the disc setup at all!!! It took my local non-Subaru
mechanic 3 hours to swap over!
02foresterL: Your local Subaru shop is either run my a moron, OR they ripped you off...
This is what I pulled out of a 1998 impreza (I ofcourse took off the struts and springs):
It fitted in with no problems, even with the wrx driveshafts, wrx brakelines, wrx hub, wrx parkbrake wires.
The only issue was such, that the ABS-sensorwire-to-harness coupling didnt match up, but the mech just cut the couplings off and soldered the wires together and its been working like that for 2 years now. Mind you, we ve got a lot of snow during the winter here in eastern europe, the ABS works a treat.
It def. brakes better with the rear disc brakes. My mate whom I sold this foz to fitted new rotors, greenstuff pads and braided brake lines. Now his foz brakes better than my current 99 turbo-s with (so far only) front 4 pot calipers fitted.