First I want to thank everyone who posted and the many who sent me emails, much appreciated.
I got a few emails from people saying they are not going to buy the car because of this . I would say lets wait and see until the final verdict is in.
The guy from the dealership called me first thing in the morning and wanted to get some information on what happened, I told him what happened and he said he will call me back after technicians looked at the car. 2 hours later, i got the call, they found metal shavings in the oil when they drained it. They asked more question about what happened, they wanted more details and I provided it to them.
Another hour later, I got the call that the engine is out and will be on its way to Subaru Canada where they will take it appart, assess and let me know. The process usually takes two weeks, but with the holidays coming up, I expect it to take a bit longer, in any case, they provided me a replacement car.
I picked up the car in the evening, tried to chat a bit with the technician, but I could not get more info. All i gathered up is that this is not normal based on what they told me (but I expected that) and that the engine is the same as the 2008 model with some modifications.
So for now, I have a Subaru Legacy, and need an engine, other than that I dont know anything. I will keep everyone posted.
There where some comments about a break in period for the car. The more I think about this the more I am convinced that, that is not the problem. As I mentioned in a reply to a previous post, The week I got the car, I drove it about 1000 KM on a regional HWY between Ottawa and Toronto, so the car engine would have been broken in. I also know 100% that no one in the dealership talked to be about a break in, again in anycase, like i said I think 1000 KM is proper. BTW. I did go and check the user manual and no where do i see language on break in, where is it, what page? there is nothing in the warning section, nothing in the index, nothing in the content of the chapters. If you know where it is in the manual, let me know. To me bottom line, if break in is important, the sales man should not ask me to let it rip on the rest drive, if its important it should be told, and noted first thing in the manual.
Anyway for the time being, I have the replacement, I am happy with that, but sad that I dont have the car, and which I was not in this situation