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Mom's Volvo 700 1990

Mom's '90 740 GL w/ Rex/Regina has not been running well. Poor idle and sometimes stalling. Recently showing check engine light. I told her to take it to a local "Volvo expert". Today she stops by and tells me shop wants to replace distributor because it's leaking oil. Mom says they cleaned up the inside of the dist cap and cleaned the plugs. They have to order a distibutor aand want $450 for the job which includes cleaning the IAC.
Being the curious sort, I ran thru the OBD I check procedure as per the FAQ.
I get a code of 2-2-1 when using socket 2, which if I'm understanding correctly means Intake air leak or O2 sensor. I could not find an air leak by spraying carb cleaner on all intake connections. Everything looks tight and I could see no obvious leaks. Throttle body is dirty and I've never checked the flame trap. I think this garage is trying to hose my Mom. I don't have alot of free time to work on this car and am looking for some advise.
I'm going to clean the TB and flame trap to see if this helps. I was thinking of changing out the O2 sensor, but will check the distributor to see if its really leaking oil.
Sorry for this long post, I'm hoping someone on the Brickboard might have some input to help. Thanks






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