Well, I picked up my CRD. No muffler - it was cut at the cat converter. Prognosis was that the cat converter is so clogged up that it prevented the turbo couldn't spool. The mechanic was patient and polite as I took it for a drive and listened to it for new sounds. It seems to spool quicker without the exhaust, but seems to make more "ticking" noises as it runs. It appears to be using antifreeze - I will check it after a few days. The mechanic recommended that I replace cat converter with a straight pipe - it would not clog up again. I'm a bit skeptical, though we do not have emission inspections in Indiana.
There is no real black exhaust beyond quick starts. It smells a lot more like diesel mixed with antifreeze, but I attribute it to the short pipe for the exhaust under the car and antifreeze overfill for now - though I did point out that there was antifreeze dripping from the front of the engine. The mechanic indicated the overflow was up there from the radiator. I also noted that the air conditioning no longer gets cold - he said that he didn't work on anything that would affect the air conditioning.
While I was feeling skeptical, I went ahead and paid for the work with an assurance from him that he would honor if there were any problems (he indicated that the turbo has a warranty and the honor their work). I think being an earnest customer and trying to work through any problems would be a better tact than demanding fixes to things that I am somewhat uncertain about now. It is a bit uncomfortable that I went in trying to prevent a major fix and walked away with an even more major fix - it would have been about $2000 for a new head gasket and with all that was done, I had paid almost $2700 for the new turbo, the ARP studs, a lift pump (I supplied to replace old one), a new sensor, and a whole lot of labor. I hope my reservations with this company are not realized - I will try not to borrow trouble.
Anyway, thanks everyone for your help. Wish me luck!

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Steel Blue 07 Jeep Grand Cherokee CRD

Mopar Skid Plates/GDE Programmer/Fumoto Oil Valve
80K+ miles & still smiling

Sold: Silver 06 Jeep Liberty Sport CRD