I just purchased a 1982 240 dl sedan. It runs great, I got a good deal. The car passed emissions in California in September. So I take the car for emissions here in Utah, and the tech. tells me that he won't even bother to test my car because there is visable smoke coming out of the pipe when you rev the engine (Nothing at idle.)
What is the proper troubleshooting procedure?

Also broken...
-Overdrive always off, button doesn't do anything.
-Heater makes really loud irritating noise at level 3-4.
-When you put the car in gear, it makes one knock from the rear. I was told the u-joints need to be replaced.

I am new to the volvo thing so any advice will be greatly appreciated.

It should be noted that I am on a shoestring budget and any replacement parts will most likely come from the wrecking yard.

Thanks