1985 300sd 30 mph max no power

I just purchased this car. It starts quickly and idles smoothly but has no power and will only go about 30 on flat ground. I removed exhaust pipe with the cat and muffler, thinking the cat was plugged, didnt help. the previous owner said the turbo got hot and caught the underhood insulation on fire but he got it out quickly and with the exception of 2 vacumn lines it didnt hurt anything. turbo area emits a highpressure air sound, not a turbo whistle,at idle and it gets louder under power. Any suggestions? Thanks Tom Postscript 1st benz Ive owned so have to catch up.

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