Well I picked my baby up from the mechanic today. For all of you who read my other posts I thought I would post a follow up so you would know what happened. After some work on my own I took it to the Volvo shop. There was fuel in the crank case, and the car wouldn't start. The fuel pressure regulator was bad and was causing the crank case to fill with gasoline. So he put a new fpr in, and obviously changed the oil and put a new filter in. He also put new plugs in the other one were soaked with gas. He also changed the rotor and cap, which were not that old. They were from a parts store. One of the contacts under the cap was arcing and causing one of the cylindars to fire when the piston was already down, this was only when the car was starting. So now the car is happy agin and ready for the road again. Thanks to everyone who gave input.

Was that distributor cap arcing because of a visible flaw in the plastic? If not, you should check the resistance on your plug wires (or just replace them).

Plug wires last anywhere from about 5 to 15 years, depending on the temperature in the engine compartment.

Yep, there's a couple of the basics conspiring to give you fits:
Bad tuneup (ignition) parts, plus improper fuel pressure. The system pressure is so important to the behavior of these engines. I almost wonder if the fuel pressure regulator ought to be changed with every timing belt job, or some similar interval. Seems to be troublesome often enough.

Glad you're up and running again. Hope the bill didn't hurt too badly!
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Rob Bareiss, New London CT ::: "Roterande Fläkt Och Drivremmar!"