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My Diesel experience is with generators, not autos, but a Diesel is a Diesel. The compression ratio in a Diesel can be 18:1 and up, so the block, bottom end and head are really strong. With a turbo, the effective compression can be even higher.
Based on that, I would guess that the block is still OK. Whatever caused the head problem may or may not have been repaired, and/or the new head and it's installation may have been faulty. Also, can you get the coolant tested for combustion products as well as oil?
Since it is a VW truck engine, did you use a VW shop? Can you check around for a Diesel expert? (Diesel is captialized as it is Rudolph Diesel's last name).
The Volvo Diesel-powered cars are sufficiently rare that a Volvo shop may not have the xpertise you need.
Good Luck,
Bob
:>)
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