Burning oil... Do a compression test before you do anything else, make sure the engine is 'warm' to get correct readings. Then test it again with about 1 table spoon of oil in each cylinder to check for ring problems.

[Trick, use a drinking straw to put oil down the sparkplug hole. Dip the straw in engine oil about 2 inches. Cover the top of the straw with a finger. Put the end of the straw in the sparkplug hole and uncover the top of the straw. That is about the cleanest way to introduce 1 tablespoon of oil.]

Your problem is most likely due to burned, dirty valves, or worn valve seals. Rings last a very long time in these engines. A head is cheaper than an engine rebuild, and the engine stays in the car.

I would buy a 'newer' Volvo before I replaced an engine block. Unless it was for my 1967 220, of course.

Klaus
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Always willing to listen, just not able to take direction.

if you're not doing the labor, I'd be surprised if you can find it under 1500, 2k for a reputable place. Odds are it'll be time to find a 'new' 850 for about the same. Keep the older one so you have the parts...

As to the oil burning, do you know where its burning? I don't know where you are but out here some of the more 'sketchy' shops (cash only, no reciept, but good enough work) will rebuild the engine for 5-600..
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If you're not driving it "like its stolen," are you really driving?