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I don't know that I would consider a 98 outback that HEAVY. For an AWD wagon <3000lbs isn't terrible.
There are ways to convert the car to 2wd, but with a manual it isn't a simple task. As noted above, the savings are going to be negligible, unless you are removing all of the drive-line components associated with the driven wheels you are disabling.
Related question: Which engine does the car have - the 2.2 or the 2.5? If its the 2.5, have the headgaskets been replaced? If so, when?
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