Hard starting when the engine is cold, but starting and running fine warm is a sign of a failed coolant temp sensor, so you are probably onto something there. If it has failed you may also see unusually low readings on the temp gauge. As far as oil leaks are concerned, first clean or replace the flame trap (aka PCV system), clean up the engine, and see if the engine still leaks oil.

hotbike650,

Does a silver hose connect the exhaust manifold heat shield shroud to the bottom of the air filter box? What region do you reside in?

If not emission control device inspection happy state like CA or NY, replace the air temp thermostat that is part of the air filter box flap valve or remove the silver accordion hose and remove the air filter box thermostat. You can choose to block ait filter box lower intake port. (I did not block it as I'm in pollution happy MO-state, the toilet. Yet my 240s will pass emissions in CA, WA, NY, OR and elsewhere.

I'd preserve the preheater function if you reside in a cold climate.

IN the air filter box is a preheater flap valve to blend ambient temps with heated air coming from under the exhaust manifold heat shield. A few years in hot summer will bring ruin to the AMM / MAF. You can test the AMM / MAF for voltages and futz with the AMM / MAF CO adjustment screw, I guess, unless Art Benstein says no.

You have the Chrysler MPG ignition. The ECU computer box is attached to the washer fluid mnetal basket frame.

I've not ever owned a 240 with LH-Jetronic 2.2 and older LH-Jet. If you have an electric digital multimeter, you can test connected sensors and devices as LH-Jet 2.2 and older has no OBD to relay engine control fault.

Also, 1987 is the final year of the rotting wire insulation harness? Inspect the wire harness for failing wire insulation in on the exhaust side of the engine and behind the engine.

Though a CeeBee guided you your AMM / MAF probably the fault after sometime of hot air only in the summer time passing through that AMM / MAF.

Thing like MAF's you want known good spares on the garage shelf and in the boot, fuel injection relay, spare fuel pump relay, spare ignition control module (thing obscure by the battery that amplifies the spark signal from the ignition ECU and send it to the ignition coil.

Find the Mitchell Service wiring diagram here for your 1987 240:
http://www.v8volvo.se/mekartips/volvo/index.html

Questions?

Hope that helps.
--
Beh.

so It Started with the AMM UNPLUGGED--- and ran.

When you unplugg the AMM you are now in what is known as the "Limp-Home Mode"

the FI computer is no longer getting a signal from the AMM -- it goes into the default mode.

Which means you have a bad AMM

There is plenty of Info on this Site about that---- Do a search --- failed AMM, Limp Home Mode, How an AMM Fails, Why AMM fails------as Keywords.