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Sorry for your loss. Most of us long term 4 cylinder B23 and B230 Volvo drivers have been through this.
I would also check the transmission fluid for anti-freeze since the radiator had lots of pressure and the heat exchanger there may be leaking.
It is good to re-surface the head as you planned on doing.
You can re-use the head bolts but check the lengths and replace any that are longer than the rest even though the repair manuals say they should all be replaced. Stretched bolts are weaker. The bolts need to be oiled before torquing and angle tightening (90 degrees after torquing). Also, run a tap in the holes to clean the threads. Some people on the Brickboard say you shouldn't use the cheap head gaskets.
It would be a perfect time to replace the coolant reservoir with one having a low anti-freeze sensor since your reservoir is probably quite weak or cracked from the high pressure. The light is probably already in your instrument panel (it is in the 93 940s but not the 91 740s), you just need to run a wire to the new or used reservoir. The 960s have this type reservoir if you can find a junked one. There is a write-up in the faqs about how to do this.
I use a 1/2" air wrench to tighten the crank bolt. I use the highest setting but only 100 PSI. I then use 120 PSI to remove the bolt easily. Also, anti-seize is good to use on this bolt.
Let us know your progress.
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Mine: 4-940s running, 2-740 and 1-940 parts cars, and 3 John Deere 630s, dtr1:3-940s, dtr2:1-740
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