where are the important grounds located in the dash of the 240 series, '89?... the dash lights are out, and headlights are out. also, the blower fan isn't working...
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'89 245 DL B230 Manual

Most are to the center console frame under the plastic. Look under the side panels where the frame attaches to the transmission tunnel, and also under the front part of the console above the Ac switch and lighter. There is also one to the right of the emergency brake console under the drivers seat. But I doubt is is a ground problem.

Did the lights and Blower stop at the same time? Do your highbeams work if you pull the stalk? Do the parking lamps work and do they work when the switch is in the P position? Have you checked the headlamp switch?

it's a manual transmission.. actually, it's my buddies car and I'm a volvo head trying to help him fix his "new" car.. he said the fuse for the lights has blown twice, and once when he tried to start the engine. I have yet to look at it, but he said the headlights don't work, and the secondary-dash lights don't engage either. he thinks there is a short of some sort by the right of the inside of the dash.

One thing to note is that the ground strap on the valve cover is hanging by a thread. Not sure how to fix this, as there seems to be no place that sells this part. is it a dealership only part? or, do you have to bootleg it, by crimping some metal onto it? Not quite sure if an "American auto parts store" would have the correct size of anything to replace it. this might be a problem for another post, however.
back to the problem at hand..

We did open the dash up, to look at the blower motor once the car was purchased. (blower motor not working, but all lights were) everything was put back in the correct place, and nothing was broken or amiss. is it possible that there is a loose, "live" wire somewhere that got disconnected? Why would it blow once the car was started? could it be a wire linked to the ignition somewhere floating around?..
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'89 245 DL B230 Manual