I'm also eagerly awaiting the photo contest results. I had intended to submit something, but I didn't get around to doing it in time. Oh well, next year.
I don't know if there is an actual kit for a short throw shifter, but it can be done. At needforspeed.co.uk, there is a "quickshift kit" listed for the 240, but I don't know anything about it. My links page has a direct link to the Volvo 240 section of the site. You can also have a section welded into the shift lever BELOW the ball, which shortens the throw length for the shift even though it actually makes the shifter longer (it won't stick up any higher). Here's the site that you may have seen before about the M46 shifter:
Short shifter for M46
Here's a page from the archives about short shifters:
http://brickboard.com/ARCHIVES/1997DEC/6382.shtml
(I already had these pages bookmarked because I want to do this sometime too. Right now I'm struggling to get a Momo knob on my M47 shifter)
I can't help much with what snow tires to use, but since you already have a spare set of 14" wheels, use those. I would suggest 185/70/14, once you decide on which ones to get. I'll be using my stock 14" steel wheels for winter to save my turbo wheels w/summer tires, and I'll most likely use 185/70/14 since it's the stock size and it's narrow.
Good luck.
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