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Hi Joe;
The spec you give at .333 - that's millimeters right? Something around .013 inch I think. That's OK.
From your description you lifted each cap off in turn to have a look. Good idea, and you found no wear on the bearings, lots of oil.
A broken valve spring would have caused a huge increase in lash. They have only one coil, and one broken end feeds into the other. Mostly the valve drops.
So the possiblities are:
A large piece of carbon has broken off and become pinched on the piston and the flat part of the head. This common on older domestic engines, but I have yet to see it on an FI Volvo. The cure is to feed some ATF into the intake while the engine is running at fast idle, smoke out the neighborhood, and burn away the carbon.
A piston has been damaged, and is cocking enough to hit the bore with the ring belt at the top, or one of the upper rings has broken and is feeding bits out into the combustion chamber. This I have seen, several times.
A rod bearing is going, and the clearance is allowing the piston to hit the head, or the knock is telegraphing to the head where you can feel it. I fixed a B30F that had that problem.
If it were mine Joe, given what I can get from the sound file, I would pull it apart and see. The head comes off quite easily, and that's enough to find the trouble more than likely.
Rhys
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