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Been there, done that, transplanting a 92 engine into my '87. Not for the faint of heart, but with patience, things will work out. The newer engine will not have the same engine controls as the 87. I opted to keep the old engine controls (after replacing all of the wiring harnesses that were deteriorated). I swapped intakes, using the old injectors, fuel rail, etc. Later replacing the injectors with new ones. I swapped the old distributor into the newer engine, because the newer engine used a CPS to fire the plugs, and I needed to fire the plugs "the old fashioned way" with the hall sensor in the distributor (the 91 distributor from your engine will have no "guts" in it). By doing this, I eliminated the need to swap any major harnesses or engine controls from one car to another, eliminated the need to install a different flywheel on my '87 tranny which I was keeping, thereby keeping the swap simple. While the engine is out of the car, do all of the things you think are necessary. I ordered a new larger breather box from Volvo and installed it, as well as a new water pump, thermostat, timing belt, tensioner, front and rear seals, starter motor, motor mounts and accessory mounts, and of course new belts and hoses. Here are some pics and a description of the work: http://www.facebook.com/media/set/fbx/?set=a.1368181683123.53563.1189132524&l=75a2564d60
Good Luck!!
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