Hugh,
Agreed, it doesn't make economic sense to put that kind of money into your car. I do understand you love the car but try not to let your emotions rule in this situation. IMO - If you decide to move forward, the used engine makes the most sense. Do get a price for installation first. Doing a valve job on such a high mileage engine is a bad idea. It will wear the bottom end of the engine out faster. Since your piston rings are leaking anyway personally I would stay away from that option. If you buy the engine will it come with a warranty? Make sure it does. A 52k engine sounds like your best option if you decide to keep the car.
Jim
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Will I buy another Volvo??? We'll see....
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