Wow, he just GAVE it to you??? Good score!
One more call for new timing belts. Might also want to replace the water pump while you're at it. I can get belts locally, but the water pump had to be ordered from rock auto.
A few other things to check are:
The fuel aneroid vacuum/boost lines where they connect to a small canister on the plastic inner fender on the driver's side. The rubber quick connect at that device can rot out and prevent the injector pump from getting the correct boost signal when the turbo spools. It won't hurt the engine, but it will kill the power big time. The rated horsepower may not be much on paper by today's standards, but they should be able to peel rubber into second gear depending on the axle ratio.
Also look at the air intake duct where the crank case vent hose is connected to it. They have a tendency to rot out or even collapse over time preventing adequate crank case ventilation. If you hear a "Pssssst!" when removing the oil filler cap while the engine is running, this could be the problem and will make it more prone to oil leaks (if it's bad enough it will blow the dip stick tube out while driving).