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Chances are you just have a blown head gasket. Does it run ?
Your engine does not have a turbo.
General concensus is the VW engine will not bolt in.
A d24t ( volvo turbo diesel ) engine will not fit in without switching oil pans and modifying the new pan for turbo oil lines, and a few other tweeks.
Best bet would be to fix the engine that you have.
Are you sure it's oil? do you have an automatic transmission? if so it may be tranny fluid from an internal radiator failure.
Try to run a compression test before tearing the head off to see what shape its in.
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-------Robert, '93 940t, '90 240 wagon, '84 240 diesel (she's sick) , '80 245 diesel, '86 740 GLE turbo diesel, '82 Mercedes 300SD for sale
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