As a followup to this post. A combination temperature/pressure sensor was replaced and everything works. According to the mechanic from NB, the temp sensor was reading very high and this would prevent the turbo from kicking in. The sensor has a thermistor for temperature. The defective one was reading over 200 degrees with the engine just started up. The new one 65. Having one of those Volvo handheld computers is the ticket to knowing what is wrong with the engine.
Blackman Outer Banks 26' "HERON"