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The whining noise is probably from the pump and likely results from low fluid. And the low fluid means a leak, probably from the rack.
The shop is recommending replacing everything because A) you will then have no further trouble and be happy; B) they will make a good buck on the job.
If the pump is not damaged, you may choose to live with a leaky rack by just topping up fluid occasionally. If the leak is bad you will have to replace the rack. They can be found in the self-serve junkyards, but finding a non-leaker may be tough (BTDT). If your pump is damaged it may have spread metal particles through the system; if so you will need to replace it and thoroughly flush the system. A pump from the JY would be cheap and they are usually in good shape.
The 87-240 parts will fit your car, but you may have to change tie rod ends (cheap) if the rack is from a different maker than your original. I doubt the 740 rack will fit (pump might).
If you decide on a rebuilt rack, I recommend a Jorgen (jorgenauto.com). Very good reputation and they supply you with a shipping sticker to return your old one to them, which nicely offsets the fact that they don't offer free shipping of the new one to you.
I recently had to replace my Volvo's rack for a safety inspection (TINY leak) and ended up with an Atlantic Enterprises unit although the online parts house advertised Jorgen. (They had failed to update their catalog) It had a leak 10X as bad as my original unit! The supplier refunded the cost of the bad rack and reimbursed me for a portion of my costs for having to go through the whole show twice, but it still was a big hassle and extra expense. I now have a leak-free Jorgen on the car, and dealing directly with them was a pleasant experience.
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Bob: son's 81-GL, dtr's '94-940, my 83-DL, 89-745(V8) and 98-S90. Also 77-MGB and some old motorcycles.
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