Before replacing the rack, you might try flushing the PS fluid and replacing it with a good synthetic ATF. My 850 was slowly leaking out of both seals, after flushing then replacing with Mobil 1 ATF the leak has stopped on both sides!!

Synthetic ATF apparently cleans the rack seals just like synthetic motor oil is supposed to do for engine seals. The rack leaked like crazy at first until the seals got cleaned, then the leak simply disappeared.

Haven't replaced a rack myself, but it isn't supposed to be too bad a job on a 240. I understand from others that the most difficult part might be separating the rack from the lower steering shaft u-joint. There is a trick to getting the joint to open. Check the archives or the 700/900 FAQ.

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Bessie - 95 855 GLT Sportwagon; 93 854 GLT; Inga - 90 244 DL 300k, gone but not forgotton