Just got this '88 240 and all is going well with the restoration. HOWEVER, the fan is noisy and it sounds like the fan bearing, not a leaf caught in there. Is that bad? It's bad isn't it? Somebody please tell me it is not so bad and there is an alternative to taking out the dash, unplugging and labeling everything and cracking open that "clamshell" to get the fan out and replace. Please. If there is an easier way I need to know. Help!!!

Taking your questions in order:

Yes.
Yes.
No one will tell you this because R&R of the blower motor is a serious PITA, but this might work as a shorter-term alternative:

http://www.brickboard.com/RWD/index.htm?id=1030806&show_all=1
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David Brick, Santa Cruz CA, 1988 245

do a search on blower motor holesaw method

Hey. Good tip. That seems the way to go to replace the motor. However, I am wondering if a simple lube job on that motor shaft is all that is needed. Seems like running some oil down a tube to the motor at the shaft would be a first step before I get a hernia. Is there an easy way to get to the shaft to do that little bit? Where would I best cut a hole to do that?

Having done many 240 blower fans on all different year model Volvos I can tell you that the only "easy" way to do it is to crack open that clamshell you call a wallet and pay someone else to do it. Otherwise I recommend using the hole saw method but I suggest that you special order from a Volvo parts the department the largest rubber body plug possible and then cut a hole in that passenger side fan case that will accomodate the plug when you are done. While you are cutting fat holes in things you can try drilling two holes 180 degrees apart in the passenger fan blade and then stick the straw from you favorite brand of penetrating oil in there and hose it down liberally and then leave it running with the heat on to help it penetrate. Do this a few times in a row and see if it breathes a little life back into your tired old blower fan. In my experience this tricks works less times than it does not so if it works for you then you got lucky and don't expect it to last forever.

Mark