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Hi Jimmy,
I think Scorron covered it pretty well. The foil hose just brings warm air during startup and cool weather from the exhaust manifold "stove" into the air filter box so the car warms up quicker.
It's required for California and other states which perform a "visual" emissions inspection under the hood, and your car isn't old enough yet for a 25-year exemption (if that's done in your state as it is in mine.)
The hose can be replaced, removed, patched with aluminum tape, or ignored, without worry about performance. You MAY have to fix it, as stated for emissions compliance, which is silly.
Your oil leaks should be identified and addressed. A good cleaning at a self-serve car wash, preceded by a thorough spraying of Castrol Super Clean, should get rid of the grime.
Power steering leaks are common but can be slowed down or stopped by addition of a power steering "fix" oil. Check product labels for one that's designed to help renew seals. I had good luck with that in my 89, with nearly 300k miles.
If the mess is from engine oil leaks, plan on a timing belt- water pump - front seals replacement job. You can do it with instructions from here, or a shop can for (my guess) under $300, especially if they're willing to let you source the parts. (FCP sells the water pump for about $50, and the belt/seal kit for about $20).
Good luck with your 240!
--Rob
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89 244GL Turbo // 92 244 M47 \\ 90 745T // 76 242 Convertible
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