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When you say you replaced the distributor. What did it come out of? I saw where some distributors align 180 out. (if not the right one) Volvo says these cars don't need timing. I sheared the pin on the cam shaft pulley, the alignment marks were correct, but the #1 spark had moved approx 30degrees.
Edit: After rereading. Agree with previous posts. Crank. It may not have separated, but there is a raised rib, and the crank has a notch. It could have jumped. I'll ask the obvious, are you sure you were on TDC on the compression stroke and not the exhaust?
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