on the issue of the wheels : I used a set of 15" wheels off my 1986 760 all winter on my 1998 V70... were the 900s different somehow? Are the wheels I have weird in some way?
on to the other issues...
If the car was sitting a long time is it not possible your hydraulic valve lifters are not pressurized as well. I don't know what the fix for repressurizing them is, but I've heard of this effect before. There should be posts on the board about it. Again, I don't know if this could lead to 0 pressure in a compression test...
Definitely soaking the rings will be required though.
If the head is toast I would look at rebuilding it unless you know where you can get one off a junker R. Come to think of it I am not sure the heads are different from a regular head... maybe different cam? I don't know. I thought the main difference between the R engine and the others was in the bottom end and in the turbo...
Still rebuilding is still a pretty solid option unless it's completely destroyed. Some would argue you're better off with a rebuilt head than a used one anyway due to all the nice cleaning and polishing and bearing/sleeve replacement they can do in there. Depends on what condition the cams are in maybe?
I'm just thinking out loud, but I can't help but weigh in - the idea of getting an R for a song is so cool!
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1998 V70 AWD Turbo 190k+
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