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Someone correct me if any of this is wrong....
I have a 1984 and this is what I do know:
The fuel pump does not prime on an LH-jetronic 2.0 system. So, as long as your pump is running when the engine is and the engine starts ok...then your fine.
If you can hear the pump standing next to the car, but not inside...that seems ok, too. If the pump runs but suddenly sounds noisier, then the in-tank pump may have stopped and is straining the main pump. Dont let this go since the in tank pump costs half as much as the main pump. It would be better to have to replace it first. Mine has probably sounded much like yours since I got it at 110,000 miles.
It has 240,000 on it now and they pretty much sound the same.
Yes, the wiring harness insulation is prone to breaking down with age. The best thing to do is repair it by replacing one piece of wire at a time.
What I like to do is remove the wire from the inside(away from engine compartment) of another volvo and use that wire to replace the existing. That way you still have factory colors. Then use self fusing silicone tape(the kind that only sticks to itself) to wrap it up. Make sure the tape is the high temp stuff. Manco sells it as "Tommy Tape". The last time I had the intake off of my 84, I removed as much of the harness as possible and repaired it all at the same time. It will surprise you how much more accesible the harness is with the intake off. Cut the black sleeving off if necessary and check every wire and replace the ones that need it. Splice in if necessary.
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