Thanks for all the suggestions. I did check the O2 sensor and it did seem to be working ok but I'm not sure if it was as responsive as it should be. In any case I have no idea of the maintenance history of the car and figured with 178K on the clock and the probability its the original I would change it anyway. My 89Turbo is a LH-2.2. I have been told turbo's were 2.2's and no-turbo's are 2.4's. That's how I found I had the wrong ECT. While doing a coolant system overhaul I decided to replace the ect and found out the 2.2's should have the blue plastic connector. Mine had the black one for a 2.4. They are not interchangeable and I figured I had the problem solved but surprisingly fuel economy didn't change at all. In fact it runs exactly as it did before.
It is shifting 3 times and reving at about 2500 at 65mph so od looks like its working. Interestingly while checking I found that the od button does not work unless the car is in park or neutral. If it is in gear nothing happens when you press the button so you can't go in and out of od while the car is in gear. This doesn't make sense and the owners manual seems to indicate it should work anytime so something is still off. Any thoughts? thanks again.

Dave
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Dave 89 740T Wagon 178K