I have an '86 244 with a b230f and about 160K miles. I replaced the timing belt recently and discovered that the entire front of the engine as well as the fan and waterpump were covered in a thick black sludge which I assumed was oil. Later I opened up the air box to change the filter and the inside of the box was also coated with this junk. I cleaned everything up, installed the new belt, and buttoned it back up.

Started the engine to make sure everything was working properly (had also changed the oil and flushed cooling system). She turned over right away and purred like a kitten. I went into the house to clean up and left the engine on. When I came back out about 10 minutes later, I saw fresh 10w30 leaking from the front of the head. It looked like it was dripping down from somewhere behind the plastic cover. However, I checked the cam seals when I took the old t-belt off and none of them appeared to be weeping. I also walked around to the back of the car and observed what I thought was water (condensation) coming out of the tailpipe. I put my hand about half an inch from the pipe and picked up some of the residue. Hand smelled like raw gas.

So here's my theory... excessive crank pressure caused by clogged flame trap is causing something on the front of the engine (crank seal?) to weep and is also developing a significant amount of blow-by which is why the inside of the air box was coated with oil. Gasses have nowhere to go so they travel back through the intake to the box. I dunno how raw fuel is getting dumped out the exhaust. Makes me very concerned that maybe my rings are shot. But 160K is "young" for a Volvo engine so I shouldn't need that kind of work done. At least I hope not...

Are there any other rational explanations for why this is happening? The engine seems to run fine. Plenty of power but my mileage is very low. Only averaging about 24mpg on the highway. Seems that I should get at least 27-28 with a manual overdrive tranny. She also runs "funny" on the highway above 70mph. Very unresponsive. Even if I put my foot in it all the way she will just barely hit 80mph. In the past I've had her at 100+ for short periods and it still felt like there was a little left. Now she feels completely "winded" at 70.

Sorry for the long post but I am looking forward to any and all suggestions...

Thanks!!