[DQ81]

With the amount of work you have done so far don't give up!

There's obvious metal fabrication skills. Here is what I would advise for a fun, still Volvo powered but up to date powerplant.

Look for a 940 donor. Find yourself an lpt b23. It's a great motor and if you can find one with an m90 (5 speed) you are all set. If you're in the US I can find you an m90 trans and ship it to you against cost. You'll only have to modify the tunnel slightly, fab an exhaust and other motor swap stuff but you'll have a fuel injected, reliable and bullet-proof engine that's at 135hp stock and can with very little effort make close to 200hp and a ton of torque. These are proven engines.

It will be safe, quick, fun and lively. It will also cost you about half as much as a rebuild, especially if you plan to liven that motor up. If you're going turbo on that motor it's gonna be even more.

I have two of these cars, looked at every option possible and though I'm doing some other things, the b230 is the way I'd go.

If you want more info let me know, I can share my research.

cheers

EDIT: just saw you're in the UK. 940 2.3 lpt on ebay all day long with 5speeds for next to nothing. Don't forget 200k miles is still fresh and these things do 500k km's all the time. You might have to fab a different brake booster due to turbo/booster interferance but those 940's are cheap as chips. For under 600 pounds you'll have a solid donor you can drive home. Wiring is not that difficult and easy to cut out/access. I just did one a few weeks ago. You can pull all the extra's you need from the 940.