Bruce, The car you built is the perfect answer to Ken C's question of -- why a V8? Let me guess--you bought the 264 needing cams, rockers, timing chain and water pump and/or head gaskets. That's what my VolvOldsmobile needed as a stock '76 265----a $2,500-3,000 dollar job at our shop back in the late '80's. Owners of Diesel models face(d) the same predicament. I've seen plenty of worn out 150k mile Volvo diesel motors---BIG BUCKS to rebuild. They don't last like MB or Peugeot diesels. What to do now? Fitting a B21-230 into a 260 makes some sense--but is just as much work as making the V8.
In three weeks of work (spread over 2 years spare time) I had a beautiful road car for way less. The VolvO went another 140k miles on my original '63 Olds (83k) F85 all aluminum 215 V8 motor plus another 12k on a rebuild before the Olds Roto-Hydramatic quit. Now I'm in the process of of rebuilding with a '93 245 along with a Camaro 5-speed. Next step is the plumbing and wiring--somewhat changed from the earlier body's harness. Hopefully, this summer........ -- Dave