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I haven't got any advice based on firsthand experience. But I'd point out that, if you're machining enough off the head to increase the CR, you'll also be changing the valve timing - as the cam pulley gets closer to the crank pulley, you retard the valve timing so an adjustable cam pulley might be in order. Furthermore Volvo specifies maximum and minimum head thicknesses, and the difference is 0.5mm as I recall, meaning that's the max allowable amount to mill off and be within acceptable tolerance. I couldn't say what happens if you go beyond that. If you try it keep us posted on the results!
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Chris, Dartmouth NS Canada 70 M-B 280SE, 83 245DL, 84 244 turbo, 90 780 turbo, 92 VW Golf, 90 740 Rex/Regina
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