You have the Eco Diesel? Must be slipping. The Eco was not a power house, it was hp wise about the same as the NA 1.6. It was built to add a low pressure turbo to clean up the emissions.
They are not bad engines, just keep it turned down until you can rebuild the engine proper like.
motTheDiesel has one in his Porsche: bigger turbo, pump, intercooled. Lot of power and it gets 74 mpg.
Run one of the cleaners through the motor for sure then; gets all the gook out of the turbo center section and will help with the boost response.
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Volvo WIA42 VED-12 / 335 hp / 1300 ft/lbs / 9 mpg
Big n' Boxy, Never met a Hill it Didn't Like
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