In my experience with 2.3's (My tbird and my dads ranger) they do not like low rpms at all. However Ive not seen any problem using fifth gear over, say, 40-45 mph. Anything under 1500 rpms and it lugs so bad itll rattle the fillings out of your rotten hillbilly teeth. This cant be good for the engine itself, whatever gains in mpg are probably offset in turning your main bearings to dust.
My festiva however has no problem running fifth at 1000 rpms/25 mph. If I could just cruise a whole tank of gas at 25 mph and see what mpg I get...
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'05 Outback XT, 19 mpg
BP-turbo 93 Festiva (long gone)
1/4 mile - 12.50@111.5
Best MPG - 36.8
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