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Unintentional overboost 700 1985

I have an '85 740 Turbo Wagon with 147K on the clock. While driving "spiritedly" today, I heard what sounded like a large woosh of air. It was the turbo pressure coming out, heavily. The car then lost the ability to idle, or even accelerate well. I pulled off at the service station and saw that one of the hoses involved in the turbo/intercooler system on the driver side of the engine had been blown off. I reconnected it and thought I had fixed the problem. Well, now I am overboosting it. The turbo will go into the red, and halfway through the red there is a hard stop, almost like a governor or something. Can anyone help diagnose this problem? Although I like the additional boost and the cool more pronounced turbo sounds, I know this isn't good for the engine, and I have lost the ability to "floor it" as the turbo spools up quicker than then engine can get into higher revs. Also, on a side note, the engine leaks oil, but I can't quite find where it is coming from. I go through a quart about ever 600-800 miles. I'd like to fix this. What are common leaks on the B230FT [I believe]. When one looks on the bottom, there is oil from the pan all the way back to the trans. Thanks for any advice
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Mercedes or Volvo, can't quite decide






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