Thanks all
Official answer from Yanmar:I had talked to a different dealer and he got with Yanmar and this is what they said. "Officially: you need a 3". Unofficially: 2" will work with 12' of pipe and a water muffler up to 55 hp." They also said that going with a 2" may void the warrenty depending on who was making the decision.Volvo:Because Volvo uses glow plugs, that elimiated them. So I figured a brand new Yanmar, even without a warrenty, is better then a rebuilt yanmar with only a 90 day warrenty.Decision made:So, this morning I went down to the repair shop and put in an order for a new 40 hp yanmar.Here is the kicker: The repair shop, who deals Yanmars and Volvos, called Volvo and they said if it was there filter that blew on a volvo engine, they would replace the engine. Evidently Yanmar doesn't feel the same because I would think he would have called them too. In anycase, I don't have the filter anymore as proof so that's all a mute point anyway. Damn!rebuilding it myself...I used to be a diesel mechanic in the army a good 15 years ago but never rebuilt one. I once rebuilt a gas engine and when finished it had a knock that I couldn't find the cause so I ordered a remanufactured engine and vowed never to try again (I spent months trying to find that knock and fix it).