Don't worry about being overfilled by 1/4 of a quart. If you were over by a full quart or more, I'd advise you to drain it out. The danger that is created by having an overfilled crankcase (1 quart or more) is that the oil level reaches the bottom/belly of the crankshaft. When the crankshaft rotates, the counterweights will splash into the oil and create air bubbles in the oil. -this is bad since the air bubbles get suspended in the oil and sucked up in the pump and distributed to the engine. An oil/air mixture doesn't lubricate as well as oil does.

Having an engine that's overfilled by 1/4 of a quart should be a problem. If you consider that the fluid level in the pan drops considerably when you start cranking (oil gets sucked up in the pump and starts getting 'suspended' up in the engine and then slowly drains back down), you'll be safe by running a 1/4 overfilled. Don't worry. You're fine. If it makes you feel any better, I typically run my transmission a full pint overfilled due to the slower 'drain-back' of the tranny fluid in the winter when I first start my car.

Suggestions regarding differential lubricants. When I acquired my '87 245 at 200,000 miles, the differential fluid was cooked and large black deposits were stuck to the gears. I refilled it using Valvoline Durablend 80w90 in it and changed it after 1,000 miles (replaced with Durablend again). Most of the sludge and deposits have come out, and the deposits that remain are soft to the touch and scrape away with my finger easily. I would recommend using a semi-synthetic like I am, or using a full synthetic. It's peace of mind and a comfort that you're not potentially going to cook the oil from hard driving or forgetting to change it after 100,000 miles. (I still plan on changing mine every 50,000 miles).

Volvo's official recomendation is to use 90 weight gear oil in the differential (1.4 quarts) and to use 80w90 for colder climates. I would suspect that you'd be fine using a synthetic or semi-synthetic 80w90 in a moderate to warm climate, but if in doubt, call the dealer. They know your car the best. Synthetics also have the advantage of helping to 'disolve' or loosen up sludge and deposits.

God bless,
Fitz Fitzgerald.
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'87 Blue 245, NA 214K

If you want to remove some slightly overfilled oil, perhaps one of the boat engine oil suction devices will do it (they suck the oil out through the dipstick tube).

You are worried about overfilling by 1/4 qt?

RELAX....it will hurt nothing.

Best rear-end lube? Amsoil Series 2000 75W-90 or 75W-140.
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www.fidalgo.net/~brook4

I am compulsive enough that I would probably drain off the excess, especially given your new seals, etc.

I believe the gear oil most folks originally used in 240's was probably Castrol Hypoy C (90 weight). These days, though multi-grade synthetics are common even at quick lube places. Personally, I still use the Castrol, though probably the synthetics are better.

Any oil will do for your differential - the lubrication needs for a differential are pretty simple.

For a couple bucks more, try a synthetic - 75W90 or 80W90. It will outlast your car.