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I doubt that the water pump failed, they usually last for over 200K miles. A ruptured seal on the water line to the turbo is a possible, but I think secondary consequence of the overheated head.
The head gasket 'looked' good, but rust caused by water in the cyl walls say otherwise. Of course that could have been from steam.
In any case, find a good car! And not all early 5 speed automatics fail due to solenoids, which are a bear to get to. It is the programming and cooling that messed up the trannies.
Lots of luck now that summer is coming for you,
Klaus
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My back feels better when I sit in a Volvo seat
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