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FWD trannies are much harder to repl because of the limited space and suspension parts that have to come off.
The water pump is indeed the source of the noise and needs to be replaced. Smoke on startup depends if it is oil or gas. Burning oil usually is caused by leaking valve stem seals and then only on decelleration or high vacuum periods. The rings last forever.
I like your alternative, so long as the 'new' car has a strong engine and is reasonably well maintained. You do have a parts car...
None of your cabin parts will fit in a 1998+, but the suspension parts should work as well as engine. Note, the 1995 was the last year for OBDI boxes and scanners for 1996+ are only for engine related things.
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My back feels better when I sit in a Volvo seat
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