Hi all. I'm having a hard time figuring out what's going on with my car (recently purchased 95 Turbo wagon w/80K). When I first start the car in the morning and the engine is cold, it will run like the preverbial bat out of hell. After 2-3 minutes, the car has noticeably less power, eventually when the car is fully warmed up I am not getting very good acceleration at all, a touch better than a non-turbo car but not even close to the performance when it is relatively cold.

I've checked the vacuum and turbo hoses and have not found any leaks thus far, I have also done the plugs/wires/rotor/cap bit as it appeared they were all original and the wires were visibly arcing when viewed in the dark. The car runs smooth as silk with no major issues, just the diminishing power as it gets warm.

Could this be the catalytic converter, fuel pump??? I'm hoping someone else has gone down this road before...

Side note, sometimes when accelerating at a constant rate, I feel a bit of surging, like it wants to go, then lags, wants to go, then lags, etc... Fuel economy is fair, 18mpg in town, 28 on the highway.