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Do the rear main seal for sure. Volvo rear main seals are expensive, but they are better and they are all I use. If the front seals on your new engine aren't leaking, I wouldn't change them. Same with the water pump, I probably wouldn't change it unless it showed signs of leaking. Timing belt and tensioner are cheap, so unless you find a sticker indicating a recent change, do them.
I'd get an L block, 1993-95 B230FT. They have the piston oil squirters.
If your car is a 1989, it has LH 2.2. The engine you install will almost certainly come from an LH 2.4 car. You'll have the change the throttle body, distributor, and use the existing engine wiring harness and Idle Air Controller.
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john
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