Well, first thing I see is the heatshields that cover the turbo are missing, and the bolts look like they've been off before. That means at some time you had an aftermarket exhaust. I can't see the uppipe (the one that connects to the bottom of the turbo to the manifold) It should be thick and shielded like your downpipe (the exhaust pipe off the back of the turbo).
Another thing is the linkage that operates your turbo. The orientation looks wrong. Here's one at the correct orientation and spacing:
Compare it to yours, see what you get.
Also, to check to see that the wastegate will open try one of 2 ways:
1. disconnect the lever to the linkage on the turbo by the retaining ring there. then try to move the wastegate linkage.
2. Remove the vaccum lines on the diaphram (the bronze oval disk that the level comes off of). This should allow it to move freely, hence you should be able to move the lever and linkage.
Another thing is how your boost gage is hooked up. I can't tell exactly, but heres a picture as to where it should be "T"ed from:
If that's not where it is, its wrong.
As for the vaccum lines, they appear changed. Take a picture of the boost solenoid, make sure its Subaru. Then, see if you can get a better picture of all the vaccum lines near the turbo. I feel you are missing a "t" there, as well as the section with the pill. Here's the proper layout:
Take a look, try to move the wastegate, and report back your findings

It looks like just another hack that half-a$$ hooked everything back. Proably had a MBC, turbo-back exhaust. Was it by chance owed by a kid in his late teens:wiggles: