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Back in the day there were two theories, nothing I have seen fully researched. #1: keeping the turbo input hot as possible gives the turbo more efficiency and as a result more boost since it is supposed to be a thermal driven device. #2 keeping the exhaust hot aids flow out of the system and aids sensor function. Insulation on both keeps the engine bay cooler which again, in theory, promotes charge density.
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casual notes from the underground:There are some "experts" out there that in reality don't have a clue as to what they are doing.
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