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I'd get the K, no question.
I've run the K in my '83 240 B23F/M46 for the last 3-4 yrs. It is a really great improvement if you enjoy running through the gears. I have further dialed it in with an adjustable cam gear from Avalanche Technologies - with 6°Adv, you get back a good portion of the low-end power, without giving up much on the top end.
The A-cam is better than the stock M, but still kind of mild compared to the K. It is often a good match for a mildly modified Turbo model, or a slushbox-equipped car that would otherwise suffer from decreased low-end torque (without a torque converter swap.) The VX is similar performance-wise to the A, but for that reason I wouldn't pay more than ~$75 for one.
Stock Volvo cam grinds more or less move the torque around. Low-end torque results in lower peak HP numbers, while the high-end torque bumpsticks put out more impressive numbers.
*EDIT - You asked about emissions - With a K cam advanced 6°, 3-bar FPR and 16° base ignition timing, I failed the CT emissions test (2-speed idle) last year. No surprise, as I was probably letting some of the air/fuel charge slip out the exhaust at that low RPM, due to the K's overlap. When I swapped the stock items back in, I passed with ridiculously low levels.
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Speed Racer, '83 240 R, '93 940 OL1 (East Hartford, CT)
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