1998 Legacy

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Hello fellow Subaru-ists. I have a 1998 Subaru legacy, bought it new in 1998 . The car has 206,000 miles but has been sitting in my driveway for the past 7 years. The body is in good condition but the motor burns oil. Many of the engine accessories are new (or were), radiator, alternator, battery. I want to restore the car but have been unable to find an engine (new or rebuilt) to start the project. Will probably need to replace the transmission as well. Any input is greatly appreciated.
 
Depending on how much money you want to spend, you can either rebuild what you have. Find a donor car, junkyard parts. Or buy a used JDM engine/transmission on ebay. Before you do all that, does the engine really smoke out of the exhaust or is it the oilpressure sensor on top of the block leaking oil on the manifold causing a burning smell.
 

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