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Just replace the crank sensor. It's a common problem.
If the sensor isn't fully seated, or otherwise faulty, the engine can indeed run like crap. Been there, done that.
Another "fun" thing that can happen is the sensor will lie to the ignition system, which will trigger the spark waaaay too early... like halfway up the compression stroke. This can literally demolish the inside of the starter if it happens to be engaged. Can't be good for the piston, rod, crankshaft either, I reckon.
-Ryan
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Athens, Ohio 1987 245 DL 314k, Dog-mobile 1990 245 DL 134k M47, E-codes, GT Sway Bars, GT Braces 1991 745 GL 300k, Regina, 23/21mm Turbo Sway Bars Buckeye Volvo Club
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