My approach to suspension is to start upgrading it and stop when your car feels "right." I'd suggest working in this order.
1. Sway bars (ipd is best, but turbos are cheap)
2. Urethane bushings
3. Bilstein HDs
4. Chassis braces
5. Lowering springs
I've completed step 1 and am looking to 3 next. I might eventually do the urethane bushings, but I don't feel like they will have as big of an impact as adding/replacing other parts will, since my bushings are still good (no clunking or anything, yet).
Lowering springs I put last because I believe that they will have the smallest effect/price ratio. Your center of gravity will lower, but the springs are costly AND lowering Bricks sometimes cause clearance issues. I don't think I'll ever do that mod on my current car.
As for engine swaps, yes, they can be done, but they'll be a little tough, either on your wallet or your spare time. Keep in mind you can do a V8 swap, but a turbo engine would keep it all Volvo. Head on over to TurboBricks for information on creating a turbo car; personally, I think it is too much trouble when turbo 240s can still be found, but you might be more adventurous than me.
Here's a page about a turbo engine swap into a 1987 245.
Here's TurboBrick's article about turbocharging your current B2--- engine.
Good luck with what you do!
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'89 244 GL -- 104,439 miles (see profile for info on car)
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