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I did it on my E30 bmw. Its worth about 7-10% or 2-3mpg in my case. I removed the belt, pump, hoses and drained the rack before caping it. Its very important to drain the rack. The PS fluid does not lubricated the rack mechanism. Its lubricated with grease. Theres also very little chance that you can actually remove all the PS fluid in the first place. If you seal it up the inside will remain coated with PS fluid for many many years. 'Looping' the PS lines with fluid inside is a bad idea. It will increase the amount of friction inside the mechanism and make it that much harder to turn the wheel. Imagine stirring a cup full of PS fluid or a cup full of air. Which one is easier?
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