Hi Nathan:
Spook & Matt L are right on. I had a similar situation. Only in my case it was the rear main seal. I waisted a bunch of weekends, trashed clothes, mess all over the place and an irate wife who wanted to use the weekends for something other than Volvo repair. All this to find out it was not rebuilable.
A low mileage Boneyard Engine solved all my problems in one weekend. Been in there for over 2 years now. Super reliable and still going strong.
You can always play with that old engine on a much less demanding basis. And if you fix it, sell it or part it out on EBAY.
Good luck
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