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Help on Fault Tracing Power Transmission 200 1977

Good morning from New Mexico everyone.

I have a 1977 Volvo 264 Grande Luxe, which I paid $500 for.
The other problem is that after I replaced the motor with a rebuilt B23 and rebuilt M46, a sort of a "slipping" or loss of wheel power has developed when I apply heavy torque. It feels just like it would when the rear tires lose traction. I've driven the car for about a year now.

I did all of the motor and tranny work myself and I really would like to fix this beautiful car. My father says its time to junk it and I already got my money's worth. The tranny shifts smooth with the new bearings and syncros and the motor has really good compression with the new rings, about 140 psi all around.

Do I need a rear axle, could the overdrive be faulty? Will any axle fit from 76-93?

Any help will be truly appreciated.






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