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It sounds like you have harness rot. The wiring on '87 and earlier 240s was well known for insulation degrading and flaking, causing innumerable electrical problems. Volvo knew this and sold an updated wiring harness. Do not know if it is still available from the dealer.
In any case, your options are to locate a replacement harness and spend several hours replacing the old one, or to trace and replace all the problem wires one-by-one. Dave Barton used to be a good source for the wiring harnesses: http://www.davebarton.com/volvoharnesses.html
(Sorry for not turning it into a link, I am on my ipad.)
You have definitely got a number of electrical problems. It can be a serious pain to try to sort them out. If the car is in good shape otherwise, it is worth the time and effort to replace the wiring harness and repair whatever other wiring is bad.
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