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Engine losing power..

Car: Subaru, Legacy, 1999, 2.5 liter     -    Back to Fix-It    -    Subaru Legacy Repair Manuals

Q.99 Subaru Legacy 2.5 engine auto transmission. My son's car, we had to replace engine 6 months ago. Got a used 2.5 was told it had 86,000 miles on it and also it came out of a standard transmission. Paid a co-worker's husband to install. Car ran great for approx. 2 weeks, then engine would intermittently lose power and RPM's would surge. Had dealer shop look at it. They believed it to be timing belt, installed new one. Car again ran great for about a week, then started surging and losing power again. Back to dealer, this time they cleaned throttle body and adjusted accelerator cable and I replaced the fuel filter. Car has ran well the last month. Tonight he got an "At OiL" temp light. Oil level is fine, car set for 8 hours while he was at work. Drove home with no problems. Also the power loss and RPM surging has returned. Any suggestions would be greatly appreciated. I am a single working mother and can't afford to keep getting repairs without results. Thanks you.

I already checked/done: Timing belt replaced, new fuel filter, cleaned throttle body, accelerator cable adjustment

More Info required The A/T temp light coming on iundicates a problem with the transmission. You will have to have it scanned for codes to determine the problem.
As for the surging. Is this happening at idle or while driving? Does the engine have to be up to operating temp for this to occur? Also, does the check engine light come on?.

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