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I'd try and figure out what the stock "plumbing" is for the PCV system... as it is on your engine, it's basically sucking in air from the airbox, thus bypassing the fuel distributor.... which I can't imagine is good (it's probably running lean). Unfortunately, my knowledge of early 240's is lacking. I hope someone in the know will chime in. You do want to keep the PCV system working, and you *don't* want it venting directly into the atmosphere.
As for the K&N filter, I hate to say it.... but it won't give you any appreciable improvement over the stock paper filter. The airbox in these cars is in no way a bottleneck like it is in other cars. The downside of the K&N is that it just doesn't filter as well as an OEM filter, and the K-jet fuel distributor is something you want to take good care of.
-Ryan
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Athens, Ohio 1987 245 DL 314k, Dog-mobile 1990 245 DL 134k M47, E-codes, GT Sway Bars 1991 745 GL 295k, Regina, 23/21mm Turbo Sway Bars Buckeye Volvo Club
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