I went through everything you have done on my 98 Outback. The final fix was to yank the heads off and replace the gaskets. It doesn't take much of a hole in the headgaskets to make the coolant system gurgle and play tricks with the temp gauge. You can pull them off without yanking the engine, just unbolt the engine mounts and jack onside up at a time. When I did it, I yanked the whole engine replacing timing belt, thermostat, waterpump, and every gasket from the block out and up. I took the block to Clifton Park Engine Rebuilders and they cleaned the whole engine, checked it for any cracks, and stared reassembly. They did a great job and the car ran like a raped ape until I sold it to buy the LGT.