I think I know the answer but you don't have an indy Volvo shop around, do you?

The reason I ask is that the standards that I'd use to maintain a new car under warranty where Volvo NA is paying the bill aren't the same as the ones I'd use for a car with 160,000 miles on the clock where I'm footing the bill, and I don't think most dealer techs understand the difference.

I'd probably first upgrade to a larger turbo and if that didn't also solve the problem go for the valve guides, and if that didn't solve the problem consider the possibility of a broken piston ring and replacing the motor with a used unit. In my case the Volvo is a hobby, but from an economic perspective it would probably make the most sense to start looking at Toyotas.

-BTC

'98 V70 T5 5-speed, 167k mi, front IPD stabilizer bar, rear factory HD bar, Bilstein HD, Volvo strut tower brace and skidplate, e-codes, XC grill, Lidatek LE30, V-1, Mobil-1 since new

"The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong it usually turns out to be impossible to get at or repair." -- Douglas Noel Adams (1952-2001)