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I have a '96 854R that has the "flaming" red and I know somewhat what you mean. Red, of any manufacturer, is notorious for fading and I've had similar problems with Audi, VW and Porsche reds. What I did with my R, was to use Mequiars polishing system and a orbital buffer. I used the #2 (I think) fine polishing compound and a foam pad about a year ago and it brought the colour right back. From what I understand, hand polishing isn't going to do it for you, you need to use machine-capable materials. If you aren't into this, and you do have to be a wee bit careful to make sure you don't cut too much, have a body shop give you a buff.
In regard to your "issues", I would say that it is fairly normal maintenence for Euro cars at the 100K+ mark. I've had 43 cars since I was 16, most being Euro, and those that have been in the ball park have all suffered the "100K blues". You keep up on this stuff, and you are good to go for another 100K (I've had RWD Volvos that went thru water pumps like clock work at 85K, go figure). On the other hand, the Japanese makes are pretty good at getting pass the mechanical things assuming that the bodies don't rot off (at least here in N. Ontario). But they also come up short versus Euro cars in the "personality factor" too.
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