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1. there's a Volvo part (number posted here on the bboard, but I can't remember where) which will adapt an '89 and later Volvo radio with the large 14-pin harness connector and the ability to control a remote CD chager to the '88 and prior 9-pin harnesses' alternatively, you can make your own connections, if you want to go that route. There are CR-814 (requires external amp, but the amp from your 240 will plug right in) which will handle external CD changers, on eBay frequently, and cheap.
2. The only Volvo CD players in the head units I can think of are double-din, and you may have fitting problems trying to cram them into your dash, in either the upper or the lower mount positions. You can also get a new Nakamichi cheaper if you shop around.
3. The Nakamichis are good stuff. Check the internet for prices and features, and check eBay as well. I got a brand-new (but last year's model, or some such, so about half price on eBay from a reputable dealer) Nakamichi CD player, single-din, for my daughter's '88 245, and with the Crutchfield adapter, it was a piece of cake to fit.
4. Main thing you want to do is get decent speakers.
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We have met the enemy and they is us. [Pogo] S70 cop car : Rough Rider tires& suspension, Walmart fog lights, eBay speakers, ambiance by Pall Mall, trim by Le Duc d'Tape, 8-channel THD by OEM amps
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