If you were pushing enough boost to do damage, you would have set of warning lights already.
Regarding the cruise control, bone stock, without this mod, my 94' 855T will push a little boost going uphill as well, so don't worry about that.
Regarding your 4 questions.
Yes, as long as no idiot lights come on. If they do regarding the turbo, the first thing that will happen is the ECU will shut the turbo off completely.
No, you do not run the risk of damaging your pistons.
Maybe, the ECU on the 850 as well as many other cars is highly adaptable and may eventually change parameters back to before this mod occuring. But being a mechanical adjustment, it probably won't happen.
Yes, this is VERY normal. The lag in power between 3500-4000rpm is something I just absolutely detest. It occurs because Volvo programmed the engine back off power at this rpm range for fear of pre ignition. Basically, they thought the intercooler was inadequate, so instead of using a better intercooler, they backed off power in this rpm range. There is nothing you can do about this except for chipping/ecu reprogramming. And honestly, Volvo played it WAY too safe in this regard. If you actually took a look at the parameters, Volvo REALLY played it safe, and in successive redesigns, they took better advantage of the power available in this rpm range without increasing the intercooler ability.
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