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which engine? 700 1988

hi all

My dad's Hreg 740 gl estate has done 204,000 miles, and is tired. he doesn't want to get rid of it because its in great condition except for a few parts (rear shocks and roll bar bushes, etc) but the engine lacks its once graceful purr.
Which engine should we put in? or is there anything i can replace (head, cam, tappets, carb,etc)? The only problem i have in the uk is finding parts. The current engine is a B230K with the EGR (aaaahhh!) there's a deep tapping noise when running, lack of power, fuel leaking from the carb gasket(only a minute amount) and the auto choke doesn't work.

Any help much appreciated by dad and the volvo
Hope to keep her running

Cheers

Dave






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