Usually, when a head gasket blows the coolant gets into the oil and you develop a milky like sludge in both the crankcase (look on the dipstick) and the coolant reservoir. From what you discribe, and I can't say for sure because you've not enclsoed photos, you have blown a hose or an oil seal or both. Clean off all the coolant and oil. Check your oil level and refill as necessary. Put water into the radiator and coolant tank. Start the car and see if you can see or hear (hissing noise) any leaks. If its a hose, replace the hose. If its a seal you may have to have a Volvo specialist or the dealer do the job for you. Some things I take for granted because I have tools and have done maintenance on my Volvo before. I don't know your background or if you have some of the specialized tools used on the B230 engine. They're not expensive if you plan to do your own work, but if not, let someone who has them or can get them do the work. If I wasn't disabled and geting very few $ benefits I'd let my specialist do the work first, and probably save time and money. Also a Volvo mechanic can do a cylinder leak down test and compression test to determine if it is a headgasket. It is possible for the well versed and equipped non-mechanic to do the Headgasket (see You Tube for videos on Volvo Headgasket repairs), but you'll also have to shop out the head for revision should it need it. There are people who do machine shop work locally or by long distance. There is a guy on Ebay who revises Volvo heads for about $300 with a core exchange. Most local quotes are $500, and I've been quoted $900 for the whole job from my Volvo specialist. Fortunately, it turned out to be a water pump replacement for only $300. Don't buy water pumps from Autozone or other such mass marketers. Only Volvo water pumps! However, the coolant dye they sell in Autozone works great in finding leaks. They also have one for oil, and sell an inexpensive set of a special flashlight and eyeglasses to help find where the dye is coming from.
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