I speak from recently having made the same switch. I had a beloved 1982 245 manual for several years, and it was finally a real beauty. I pretty much had nothing left to fix! I then stumbled across a gorgeous '95 Yellow 850 T5R (only about 150 of which were ever imported). It was an automatic, but I didn't care--it was gorgeous and the price was right. Eventually I discovered it had a salvage title, so I walked away. Nevertheless, after having driven it, I was hooked--I had to get an 850.

As Bill said, there are no factory 850 turbos with manual trannies (called M56's, by the way) in the US, unless brought in from Canada. Swapping manuals into turbo cars is becoming more popular, and can be done (if you have enough skill to replace an 850 clutch, you can probably pull off the whole swap). I eventually bit the bullet and decided I'd rather get a turbo than a N/A with a stick, so I ended up with a nice 850 turbo wagon for $3000.

That said, if you have 8 grand for this car, you really should be looking at 98 S70's and V70's. They're entirely the same as the 850's, except for the interior, minor styling changes, and the name. The drivetrains are identical. In '99 the engine management system changed. Many feel the 99- as less desireable. PLUS, for '98 (and later) volvo offered the T5 (high pressure turbo) models with the M56. The 98 V70 T5 stick is very rare, but apparently Bill has one (read: I'm jealous). The S70 T5 stick (the sedan) is also rare, but easier to find. If you don't mind having a sedan, this is what you should be looking for. Low-pressure turbo S70s (GLT's) are also available with the M56. Take your time and wait for the right car. You should be able to get a nice one with less than 100,000 on it for 8k or less.

Looking back on 240 vs. 850, it's hard to compare. It's apples and oranges. Some things I loved about the 240, but there are other things where the 850 shines. Borrow someone's 850/S70/V70 if you can, and see if you really like it.

Didn't think my post would be this long, but thanks for reading!