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Dave, it's a drop in swap more or less. It's at least bolt-together, assuming most of the parts are ok besides the block. With luck, nothing actually got into the turbo or into it's bearings from whatever destructive event happened.
About 2 years ago I had a beautiful 88 740 NA drop a valve into the #3 cylinder for no good reason... 236K miles and never a hint of trouble from this car. My wife and I had driven it to Newfoundland not long before that without a hiccup. So I guess things like this can happen. The good thing is that they rarely happen to Volvo engines.
The issues I can think of are this:
You'll be crossing the dividing line from LH 2.2 (hall-sensor triggered ignition) to LH2.4 (crank triggered). You need the 91's flywheel, crank sensor, and bracket installed to the back of the head.
The turbo itself is probably different, since Volvo switched from Garrett turbos to Mitsu turbos right around 1990. I'd use the entire unit, manifold and plumbing on the turbo side of the intercooler, all from the 1991. Expect to fight with a few manifold studs on the 89 engine, and possibly call a local machine shop to find out just how much it'll cost if you have to have a couple broken studs replaced.
There will be at least one temp sensor on the head that's different for LH 2.4. You're going to keep all the wiring and ECU and stuff from the 91; I'd just check each sensor and while the two engines are out, apart, side by side, change all sensors to the 91 type. I would simply swap over the 91 intake complete with fuel injectors. With appropriate hangers and hooks, you can even leave this hooked to all the wiring for the most part, leave it right in the car. IT's probably already apart anyway for the cylinder inspection.
You don't HAVE to change the distributor but it will no longer have any effect on timing; you might want to add the timing blockoff plug that the 91 has and the 89 does not. Changing the dist complete would be fine too. The 89 one is more valuable if the connector at bottom is intact; it could be sold on ebay or whatever. If one is leaking oil inside, I'd change it out.
You will probably find a few differences in the battery cables and the accessory brackets, but overall the blocks will be the same and things will work out fine.
Note that the dipstick on these likes to hit the firewall if you're not careful; it can snag on wiring or even get bent. Also note that the 91 flywheel MUST BE clocked correctly to crankshaft TDC or the engine will not run. Don't lose track of it's position from the old engine- spray paint it or something.
Good luck with the project!
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::: Rob Bareiss, New London CT ::: 92 244 M47 212K ::: 90 745GL M47 275K ::: 90 745T AW71 213K ::: 90 745T Parts Car ::: 88 245DL SOLD! ::: 84 242DL Project ::: 70 VW Bus ::: 70 VW Pickup Project ::: 71 VW Notchback :::
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