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Many good fundamental questions. You can use the search function and probably find answers to all your questions. Users GSXR, dieseldiehard, Brian Carlton and sixto have vast real world experience with these engines.
I am in the middle of putting a head on a W124 and their posts have been invaluable. From a practicality standpoint I would think that it would be cheaper to repair a turbo than to convert it to a non turbo.
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Doug
1987 300TD x 3
2005 E320CDI
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