Those rear heaters are tricky.  I've read that the core can show leaks
only when hot, so that might be your problem.  It might also residual
coolant on the surface of your heater from the old leak you had.  Did
you take the heater all apart and clean the housing and core?  After
replacing my core, all was fine for one summer, the next spring it
stated to smell again and I traced it back to the junction between the
valve and the core, just like yours.  I put another new seal in there
and dressed the seal with head gasket sealant and put some washers and
lock nuts on the bolts securing the valve to the core.  So far so good.

RE: Using the Subaru coolant conditioner...that's a personal choice.
You will find lots of discussion on those types of products in the
archives.  BTW I just put some in my 01 Subaru Forester and it
works...but I consider it just a "stop gap" measure, not a fix for my
weeping head(s).

Pascal
'84 Westy

-----Original Message-----

This summer I had taken apart my rear heater because of a serious odor
problem.  I rigged up a pressure test and found that the core seemed OK
but the junction between the valve and the core showed some bubbles.  I
replaced the O-ring, and cleaned everything thoroughly.

I still have some odor from the rear heater.  Not as bad as it was, not
overpowering, but definitely noticeable.

I have some Subaru coolant conditioner -- anyone think that would help
with this issue?

Allan

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