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Going to back Steve up on this one, The 'Y' switch is power antenna up and down but wouldn't count on the motor being any good.
Lamda was the name given to the feedback fuel system known as "Lamda Sond" just a fancy greek name for oxygen senser.
The turbo coming on late might be a leak or broken spring in the wastegate, do NOT however disconnect the wastegate to experiment. If that happens to be the culprit and you run without any boost control you might end up cleaning off the highway of your broken parts into a 5-gallon bucket with room to spare. The power steering belt needs to be tightened or replaced, I suspect the rubber bushings in the mounts have hardened up some giving you this additional slack. If a tighten wont cure replace the belt going one inch shorter.
Setting the valves, check the FAQ as its chock full of proper procedures, you will however need some special tools to get the valve shims out and you might be inclined to visit a wrecking yard to harvest some more valve shims from junkers. A good pocket full of these will be to your advantage. You can make the tool however if you get a needle nose pliers with a very long snout and bend the jaws to go around the camshaft to pick the shims out of place, as for a compressing tool you're on your own but check on Flea-Bay, I looked for you tonight and didn't find any so you might want to find a volvo dealership and bring some vaseline... You can figure it out from here! While you're at it change the timing belt anyway as its cheap insurance.
I recently drove my neighbors intercooled 700 and even in automatic form that thing was quick past 2400 RPM and pulled like stink to 5000, it doesn't boost up like a Cummins ISC but was never meant to be a high boost engine to start with. Remember an ISC doesn't like to fly much past 2100 RPM so its pressure relationship is different to start with not to mention we are a few liters short to begin with.
Again check the FAQ as it will guide you in the right direction. Flame trap is part of the breather system and keeps backfires out of the crankcase, would like to see that on a chevy motor... Volvos have a slightly different language that in some ways is a bit more descriptive than the general terminology used by GM, PCV is flame trap... Turbo gas motor is unknown outside of the GNX except the poncho turbo grand-am or trashcan of the late 70's and a case of beer will get you a long ways provided you stay off the road during consumption.
Hope this helps and a big CONGRATS on your Volvo purchase.
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