Kamin wrote:o2 sensor will not cause this problem
check your plugs and timing.
i have to say that is incorrect. the o2 sensor is part of a series of sensors that determine the optimum fuel ratio for any given situation. if the o2 sensor is inoperational, the car will run rich as a protective device. the popping is fuel soaked exhaust igniting on the turbine housing. at 4.4k rpm and under boost, the turbo will be very hot (obviously) and heated fuel (from the combustion chamber) will ignite on contact. thats why sometimes you will see flames from the tailpipe.
backfiring is most likely from poor ignition or incorrect timing, but not the popping. i am going to say that fixing the o2 will fix your car. but clean your plugs and reset your ecu after you fix it.