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You'll almost certainly find holes in the turbo air inlet hoses. Usually the discharge of the intercooler is the worst offender but they can be in any hose downstream of the turbo.
Some of the hoses cost as much as you just paid for the car, from Volvo. See one of the discount suppliers on the Board here or www.fcpgroton.com for good prices.
You should have a Garrett turbo. The switch to Mitsu seems to be 1990, but some earlier cars may have had Mitsubishi as well.
The 89 760 ought to have Turbo Plus. If so, that might be a very quick Volvo.
The oil's everywhere because you probably need about $300 worth of work to fix turbo oil return line seals and oil filter extension housing seals. Every one of these cars needs that work done and space is a bit tight under there. Best done on a lift by a pro, but you can take it on if you think you have the patience. That's just my guess without actually being under there to see it, just based on experience.
If it was mine, I'd also be replacing the fuel pump relay immediately, and getting a spare AMM, radio suppression relay, and ignition power stage, just as preventive measures.
Good luck with it and have fun!
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Rob Bareiss, New London CT ::: '87 244DL/M47- 234K, '82 245T/M46-182K, '84 242DL/AW70-100K, '89 244DL/AW70- 212K and I miss my: 86 244DL 215K, 87 244DL 239K, 88 744GLE 233K, 88 244GL 147K, 91 244 183K
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