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Always have a third party mechanic look over any used automobile and give you his analysis. An experienced indy volvo guy can tell many things about the car based on very minute data that you would probably miss. Compression test, coolant system and pressure test, transmission, exhaust, etc. Any good mechanic should have a standard fee for such a job. If the used car dealer won't allow you to do so then walk away.
As for the turbo, I would do three things:
1) Get a paper cup, go under the front bumper, and undo the drain cap for the intercooler. Place the cup under teh cap and collect any oil that drains out. If you get much more than 2-3 tablespoons that's a bad sign (turbo is throwing oil). If you get nothing that may also be a bad sign since its likely the dealer cleaned out the intercooler (as service or cover, who knows).
2) Pull the hose off the front of the turbo and check for play. Take a look in the FAQ for more info on how much play you should see, etc. Some small lateral play is fine, but anything substantial is a problem.
3) Inspect the turbo physically, peeking around the sides and from teh underside if possible. Make sure you don't see any oil leaks. You also might look at the hoses and make sure there aren't any holes in the bottoms (the main tubro hose is pricey).
good luck,
rt
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