I was on the highway today after cruising around for a bit and I punched it in fourth and it got up to 5500 or so and the engine just cut off (not turned off but like, just dropped all boost and started dropping in RPM's kinda). I remember reading somewhere that the cars come with FCD's but I can't remember where I read that and if it was talking about FC's or FD's and if I remember correctly, that's only for when you're running above factory boost...
It's a stock T2 with RB Duals and HKS intake.

Also: My boost guage insists on not working unless I'm moving and give it WOT then it comes back to life. It just sits at max compression and sticks there.

 

It's called fuel cut at 8.6psi due to boost creeping. An FCD is an aftermarket box that interferes with the boost signal to the ECU, and prevents fuel cut. Do not go and buy one, then do nothing else. Instead of fuel cut, you'll get a blown engine. Ultimately, you need a ported wastegate to be able to control the boost level. Your intake and exhaust modifications are allowing the turbo to breath much better than it would in stock form.

 

That's what I assumed, so I would have to port the wastegate or buy a new one?

 

I also just found out my wastegate is getting stuck open and thats why the boost guage is stuck.