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My motor recently blew, and I have a terrible rod knock now. I am not very savvy when it comes to cars. I have a 2006 legacy 2.5i. My mechanic is willing to do the work for $500 if I can find a motor. I have been looking on eBay, but I don't really know what I'm looking for, and my mechanic isn't helping much as far as finding the motor goes. I also don't know if anyone can definitively tell me, but is this what I need?

 

http://www.ebay.com/itm/271526650926?_trksid=p2060353.m1438.l2649&ssPageName=STRK%3AMEBIDX%3AIT

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That price is what Heuberger or most other Subaru dealers will quote for a new EJ253 bottom end. If its free shipping at least save on the sales tax. You could find a low mileage complete engine for around the same price but swapping over your heads and accessories to a fresh SB is basically like having a new engine.
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You'll need more than the short block. Head gasket and seal set, exhaust gaskets, coolant, oil (x2), filter (x2), heads will need to be inspected, clutch and flywheel resurfacing if it is a 5MT (save money on installing a new one if yours is old), oil cooler (this will likely have all kinds of metal in it), and a number of other bits and pieces.

 

Look at #ynansb to get an idea, knowing that this list is for the turbo engine.

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