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Sean:
I think you are approaching the wrong side of the equation. Nice price on the cat btw.
I'd check the air intake for the turbo and all the associated vacuum lines first. I imagine that by power loss you mean it just feels like the car is running under regular power with no real "effect" from the turbo? That it feels equal to a car running without a turbo at all?
Check all the hoses that attach to the turbo and lead to it. Also check the vacuum hose that comes up to the dash and connects with the boost gauge. There is a secondary hose that connects with that hose inside the dash and can slip off pretty easily. Check it, and if it is detached use some wire to make a noose and tighten it around the hose to keep it clamped on. Also, check all the other hoses to the top of the engine.
Often I find that when my acceleration is down its a result of a pinched or rotted hose that is open. Many of the hoses on older volvos start to rot and rip right behind the spring clamp that holds the hose on... just the wear of time and pressure. If you find one broken just cut off the bad end and put it back on with the clamp.
May work may not, but at least all this is free work you can do yourself.
regards,
Rick
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