Corey,
As long as there are no visible fuel leaks, I would address the exhaust issue and go from there. It may or may not be your problem, but it's a starting point. Most likely, your manifold gaskets are the source of your exhaust noise. If replaced, I would recommend using the original Volvo gaskets (only about $20 from the dealer for all 4). The original gaskets are multi-layer metal (similar to a head gasket, but obviously not as heavy-duty), as most aftermarket gaskets are paper material. The original equipment set will last a very long time, as the aftermarket may blow out repeatedly. It is a fairly easy job, as long as none of the exhaust manifold studs break off inside the cylinder head. I did the gaskets on my 240 Turbo in an afternoon, with no broken studs (the turbo had been off before). When I replaced these gaskets on my 760 Turbo, I had a few broken studs, and had to remove the entire cylinder head to have them drilled (not much room on the car). Anyway, I would fix that first, then see where you are at with the fuel smell.
I hope this helps...
Joe S. - Volvo Master Technician
1988 760 Turbo w/275k miles, 1981 242 Turbo w/243k miles
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