Indeed - Subaru engines work extremely well with LPG, and yes you need Flashlube. You just top up the Flashlube bottle every 10 tanks of LPG and that solves any issues with valve wear. LPG does not cause an engine to run hot or damage piston rings. I previously had a 1996 BD7C Legacy 2.2 that did over 80,000 miles on LPG, and my current 2004 BPEA Outback 3.0Rn has been running LPG for the last 3000 miles with no issues. Other than the issue of only paying 49p a litre for fuel, and still getting over 30mpg on motorways that is :)
My last car was a Vauxhall Vectra with a factory LPG system, and my wife's Honda CRV runs LPG. Unless you've got a direct injection engine, don't do many miles in a year or don't plan to keep the car for long, there are very few reasons not to convert to LPG. In mainland Europe LPG is incredibly common, especially Germany, Poland, Italy, Sweden and Holland.
Cost of conversion for a four cylinder Subaru is around £1000-1200 for a good system and an experienced installer (add about £100 for a six cylinder). Given that LPG is currently less than half the cost of petrol, the average person will have saved that much in the first year.