Have a good friend who owns a shop and can do this for me. Also have the complete rear axle (including diff) from an early 240 with 3.73:1 gears.
Want to swap for the 3.31:1 gear set that I currently have, in the hopes that the swap will result in better performance. I've always thought that the stock gearing is too tall. It's great to be able to cruise at 70 and turn over only 2600 revs, but the red block n/a motors don't seem to "wake up" 'till >3000rpm.
Theory is that if I can keep the engine closer to being within its powerband, it will be easier to accelerate/pass/merge, especially on the highway. Does this make any sense?

Few questions for the Volvo guru's....

1) How will this affect fuel economy? Currently averaging about 26mpg, mostly highway miles.

2) How much will this swap make my gears "shorter"? Should I consider joining the rowing team? :-)

3) How much higher will my cruising RPM be in top gear? 'Bout 150-200rpm or so?

Thanks in advance. Appreciate all of the advice that the kind folks on the BB have unselfishly given me in the past!!

-Jim