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I think it's absolutely absurd that your mechanic would tell you that a turbo could fail due to a leak in it's drain pipe. Maybe if there was a huge leak out of the supply line but if it was that bad of a leak, then there would be a much greater loss of oil and it's likely that your car would smoke due to the oil burning on the outside of the turbo. All it creates is a mess under your hood. I go with what MadeInJapan says. I was a truck diesel mechanic for five years, now I'm in parts on the warranty side and I've never seen turbos fail due to a leak in the drain tube. Granted, trucks are different, but a turbo is a turbo: they all need lubrication. My '98 also leaks in this area. It's more likely that my or your or anyone elses turbo will fail due to contamination in the air side of the system than an oil leak. If your "air" side of the system is clean and seal, then you shouldn't have a problem. I hope you trust your mechanic 'cause it sounds like he's unfamiliar with Volvo turbo charged engines. To answer your questions:
1. No, it is, however, common for it to leak at this mileage.
2. No, Yes. Replace your turbo if it starts to make "funky" (technical term) noises or if it fails completely
3. Way cheaper to replace gaskets.
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