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"The later engine the better. The crankshaft was upgraded in the 1988 model year, and the connecting rods in the 1989 model year. I would buy a 1990, or later, engine."
I'm suprised that John didn't mention that starting in 1993 the B230FT engines received the piston oil coolers and this will eliminate the piston slap issue and allow the pistons to run at a cooler temperature (and provides increased lubrication for the rings). IIRC the 3 generations of B230 blocks are as follows:
1985-1987 Original B230 blocks, original low-friction design as adapted from the prior B23 blocks.
1988-1992 K-blocks superceed the originals, have improved crankshaft and thrust bearing. I wasn't aware that the thicker rods were introduced a year later in '89, but I'll assume John is correct since he's probably torn into a lot more Volvo engines that I have (and I have yet to open an '88 Turbo block).
1993-1995 L-blocks superceed the K-blocks, with piston oil cooling jets that direct oil onto the cylinder walls and consequently the piston skirt and rings. 1995 is the last year of the L-blocks in the United States, but were available for awhile longer in some overseas markets.
As for work on the replacement engine before installation, I personaly would change the head gasket if it were my own car. I can do a head gasket on a turbo car about 3 times faster if the engine is out of the car, and my hands end up with a lot fewer cuts on them (the turbo bolts and hardware cause the most grief for a big handed guy like me). Have the head checked for flattness and don't hesitate to have it machined flat if you find warping. Visually check for other damage, and if you have a few more dollars to spare you can have the head pressure tested. I'd also take the time to change all the oil seals (cam, intermediate, front crank, and rear main) and the Timing Belt before installing. If you're seeking advice on restoring an abused engine, I'll let John advise you on the finer details. I prefer to shop around to find a good used block and avoid changing rings, bearings, etc. -there are only so many hours in a day, and there are a lot of engines in the salvage yards that have a lot of potential life left in them.
I too would advise performing a compression test and checking the basic systems on your existing engine before proceeding with the swap. A leaking/decaying turbo hose or a bad blow off (return) valve have been problems of more than a few of my friends turbo woes.
God bless,
Fitz Fitzgerald.
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