Ok, so I was leaking fluid out of the rubber boot just inside the passenger front wheel. I smelled and compared to the fluids, it was ATF, checked the power steering pump which was low as hell. So, after some research I have found that it is most likely the inner seals leaking. I am presented with two options:

1) Replace entire rack, $250ish for the part, 5 hrs labor

or

2) Simply redo the seals myself, $70 and my sweet time

I guess I am seeking an opinion. I consider myself a pretty decent mechanic, (we all do!), but am just wondering if anyone has experience with these things, and could tell me whether or not is is a feasible thing. By "decent" I mean I redid the blower motor on this guy in the middle of February in my driveway, ha ha. Thanks!

we used to reseal racks at the dealer. you don't have the tools for the 3 different possibilities that might be in the car. a 76 is probably going to need hard parts, also, due to age and wear. remember, you're stuck with 75 to 78 for used or rebuilt. the 79 and up are bigger where the column and rack attach together. good luck, chuck.

Julius, I was working at a Volvo indy shop when the 240's started coming in for steering racks. Rebuilts were only available from Volvo and very expensive. My boss had me rebuild many racks with parts from the dealer. It is a project that requires extreme cleanliness but there isn't anything beyond a careful do-it-yourselfer. The final step is setting the power balance right and left after installation--a bit tedious as it is a "make an adjustment, then reassemble and test procedure" -- which I made a little easier by modifying a pinion cover as a tool that allowed me to make the adjustments with it in place.
I would find a good used rack as a first choice--they will all fit your car (ZF and CAM racks mount differently--take all the hardware). Buy one rebuilt as a 2nd choice or rebuild yourself if the savings are crucial to you as a 3rd choice. -- Dave