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I'd have to believe that when the mechanic switched engine he would keep the car's power steering pump as opposed to one being on the rebuilt engine, though I've been wrong many times before.
If your mechanic friend is available to help (or your parents have some mechanical aptitude) have them flush the steering. Use synthetic ATF.
Here's a pdf showing how to check pump pressure as well as balance (and torque to turn the wheel so much)
http://rapidshare.com/files/422931436/ps_pressure.pdf
The apparatus can be built relatively easily and tested to determine if the steering gear or pump is malfunctioning.
My initial thought is the fluid is crap followed by the pump.
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If you're not driving it "like its stolen," are you really driving?
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