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The crack sounds ominous. You are correct in saying that the turbo on the '91 is water-cooled (it *is* also intercooled unless it is an early LPT model which I don't think yours is). It is possible that water is leaking through an internal crack into the exhaust turbine housing. This would give you steam and would not affect the oil (unless the crack also opened into the oil supply). That could also make water appear at the exhaust manifold joint. Presumably this is when the engine is fairly cool, as water would evaporate from the manifold immediately at running temoperature.
Also, at running temperature the crack may close up due to expansion of the metal, which is why you don't see the steam. Of course, it may be that the steam is hotter and less visible.
Does the dealer know about the crack? Why did they have to replace the head gasket twice in 6 months?
It is possible that the head is warped, and even slightly possible that the block is warped (both of which would cause the gasket to fail). However, this often leads to water in the oil, which you say you aren't seeing.
If the problem is the turbo, presumably it is your responsibility. An official Saab dealer will want to replace the turbo with a new one rather than have it repaired/reconditioned. A cracked turbo, however, would probably not be acceptable as an exchange unit anyway so a new one might be your only option, or perhaps a rebuilt one with a surcharge for not supplying an old unit in exchange.
Be careful that they don't change the gasket first, then something else that really fixes the problem, then charge you for the gasket work as well since that wasn't the problem so it's all your responsibility!
I've been in a similar situation with another UK dealer and it became rather unpleasant. A year later, we've only just got back on speaking terms...
posted by 62.253...
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