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Hercubar,
Very easy to find out if it is loose valves. Remove the valve cover and check the valves. The procedure is in the 700/900 FAQ. All you need is a 10 mm wrench and a set of feeler gauges to do it (and a new valve cover gasket). I like to check my valves on a cold engine, but some people like to check them hot. There is a spec for both, so do it the way you like best.
Also, you might want to do a compression check on the engine, if you have not already. If your numbers are low, you may have worn out rings which would explain the oil consumption.
If you are planning to keep the car for a while, you should buy the Bentley Volvo 240 Service Manual. Invaluable.
Oh, and clean the flame trap and throttle body if you have not yet!
Good luck.
-Josh in Seattle
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