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Get a new oil filler cap -- the gasket is bad and oil is getting pushed out at highway speeds. If you don't get the cap on right, also, this will cause large quantites of oil to blow out -- about a quart in 500 miles or so. Will cause oil to burn off the exhaust when it runs won the valve cover. My TE used a quart on the way to Cleveland and almost a quart coming home this summer, at which point I discoverd that the cap was on crooked. Still leaked after I got is on right, so I replaced it. No oil usage to speak of since.
There's only a couple quarts of hydraulic oil in the whole system -- the amounts you describe would require obvious spray from the hose to get over to the passenger side, the hydraulic pump is under the PS pump pulley.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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