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I have the 1983 Volvo manuals and in the VIN for that year, the 88 means a B23F engine.
-The 5 that follows identifies a wagon (5-doors)
-The next digit is a check number tied to other numbers in the VIN
-The D is a model year code, indicating a 1983
-The 1 identifies the manufacturing plant (Torslanda, Sweden)
-The remaining digits are the sequence or serial number. There should be six of them.
Your serial number suggests an early production 1983 model, likely manufactured in late 1982. This goes along with the apparent date code on the cylinder head casting.
I'm not sure what your cylinder pressure numbers mean, or what technique was used to get them. Leakdown testing usually expresses readings as a percentage.
Many Volvo red blocks are still in good running condition at your mileage, but that depends entirely on their maintenance and service conditions. If your cylinder bores are not badly worn, crosshatch honing or "glaze-busting" and a new set of piston rings may get you another 100k miles. On the other hand it might be cheaper just to find a junked car with lower miles and buy the engine.
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Bob: Son's XC70, my 83 244DL, 89 745 (Chev LT-1 V8), 98 S90 (recently sold) and 2010 XC60. Also '77 MGB and four old motorcycles
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