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For a good blow-by-blow account of the evolotion of the 700/900 series, check out these links:
Swedishbricks.net's 700/900 Model FAQ
Brickboard FAQ 700/900 Series Model Identification
I've driven both 740s and 940s, and if I were you I'd keep looking until I found a '94 or '95 940 turbo (although don't tell my 740, it might get jealous and blow its rear main seal in a fit of pique). They're hard to find, but it doesn't get any better than that when it comes to 4-cyl RWD Volvos.
jeff daigle
'89 745GL 141,000mi
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