Hello... right about now I feel like a sad clown and looking for some seasoned advice.

A quick background: My wife and I just bought our first Volvo - something we have been dreaming about for awhile. We found a 1979 265GL AutoTranny at the local Volvo dealership that was a trade in from the previous owner who bought it new. It has 350K but the body and interior are in pristine condition(IMO. I did some research prior to the purchase and saw that there was some problems with the 260 but decided to go ahead as the mechanics at the dealership said it was in great shape. Well today 3 days later I took it in to a volvo garage (not the dealership) for a tune up and basically they said I should either try to return it or get an engine swap. Well returning it is not likely as I bought it "as is" so best bet is that I could try to trade it in. So far I've got $2700 Cdn "invested". It is leaking oil and drops rpm significantly when shifting into Drive from Park or Neutral.

My wife wants to cut our losses and try to find something else. I'm for doing an engine swap. From what I read so far I understand the B230FT is the best choice but what else will work? How difficult is it to do a swap myself (I have access to all the equipment)? What should I expect to pay for an engine? How much to put it in at a garage? Can I get anything for my PRV-6? Are there any articles out there explaining the swap?

I'll stop here because I have gone on too long already - thanks in advance for any advice/help.

Peter