Outback 1997 was overheating. Temperature needle would move to hot when accelerating and would move back down to half when changing to a lower gear automatic). Mechanic replaced radiator and thermostat and cap. Drove for 300k (100km p/h) and when slowed in traffic gauge want back to 3/4 hot. Again would drop to half when changing down gear. Fan works.

I have heard that the "only real reason" for an overheating Outback from the mid-nineties, other than a broken radiator, is a bad head gasket. Check your coolant overflow tank for oil. Check your oil cap for milky foam (coolant). Good luck.

Sounds like heater problem.not enough flow down to waterpump.
solution cut heater hoses and add to t junctions and join bypass so water flows through heater and through bypass straight to waterpump.

Check the water pump id sounds like not eneough flow.

PK