I am smiling as I read your post :)
Your engine does not have spark plug wires. Those little black boxes above each spark plug are coil packs. This eliminates the need for a distributor and individual wires to carry the charge to the spark plug.
Your picture shows the coil pack not completely seated in the engine, I assume you fixed that by pushing it down firmly.
Find yourself and electric supply store and get a nice long length of shielding for those wires. The Volvo stuff tends to crumble from the heat. Just take a piece of the current stuff Volvo calls sheathing so they can match the diameter, and then use electric tape to secure it.
Oil on the outside of the plug can be caused by spilling oil during an oil change. Oil or gas residue on the plug is an indication of a misfire, which could be from a bad plug, bad coil, or many other problems which could be a hurt to the pocketbook. Just keep an eye on it.
Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)
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