I don't wish to add to the pile of horse manure, but I have seen plenty of engines run with that configuration. Which is why I tell people to count the teeth between the cams before they pull off the belt. The code will be set to indicate that timing is off, the ECU will compensate, and the engine will run fine.
Did you release the tension? The intake looks like it is straining pretty hard. But a release will not move the cam a full tooth.
Yes, you need to reset the timing. But first you need to find that hairline crack that Volvo calls a crank timing mark.
I am still puzzled by the slow cranking. With the plugs out, the crank should turn 'easily' by hand. PO didn't run out of oil did he?
Klaus
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Two good Volvos, a 220 and a V70R
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