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At 130K it is still a baby. The compression issue may just be coked up oil rings. Head over to www.bobistheoilguy.com and read up on Auto-Rx under the forums section. Go to the forums, middle of the left column. Then read the Additives, Fuel, Oil, Cleaners forum for posts on Auto-Rx. A lot of the guys that have used it got most of their compression back after doing a cleaning cycle with Auto-Rx. It is a gentle cleaner that works over 3000 miles. If you have a worn cylinder it will not help. But $50 is a lot cheaper than tearing an engine down to find out it was only stuck coked up piston rings that were effecting the compression.
www.auto-rx.com/index.html is the web site for info and ordering. It is not a snake oil it does what it says it does.
For performance here is a link to a modification section over at TurboBricks on 700-900 mods. http://www.mcbrooms.com/volvo/fast700.htm
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