So, I installed the turbo sway bars on our '88 240 wagon a week ago along with with the IPD poly bushings and the supplied brackets. I noticed an intermittent clunk on the test drive. Turns out the sway bars are sitting really close to the engine and hitting the engine with even a slight change in suspension compression/rebound. The brackets that came with the original sway bars were stepped so the bar was sitting about 1.5" or so lower than with the IPD brackets.

So, I disconnected the endlinks (since I had to redo the bushings on them anyway) at the time hoping that will stop the sway bar movement and leave enough clearance for the engine to move up and down. I guess I was wrong as I noticed all the coolant leaked out of the car this morning.

I'm not exactly sure where its comming from but I saw it dripping out of this long (3-4"), round metal/silver cylinderical thing directly below the waterpump, it appears to be bolted to the engine block with a 12mm bolt. Any ideas what this is, a plug of some sort perhaps ? It could be that the water pump itself is dribbling the coolant on this cylindrical thing but I noticed about 1/4" gap between this cylindrical device and the block.

Any advice is greatly appreciated.