I successfully revived the AC in my 1982 245 wagon using a rotary compressor setup. This is a do-able DIY project; I've been happy with how mine turned out.

Before I took the AC system all apart, I found a boneyard car (1992 240) equipped with the rotary compressor and salvaged from it the rotary compressor, the power steering pump with high-pressure hose, and the bracket which supports the two.

The newer bracket will bolt onto the engine block in place of the bracket presently supporting the York compressor and PS pump. Belt alignment will be the same, but finding the right belt size to drive the compressor may take a couple of tries. The newer bracket is aluminum, and you may not believe how much extra weight you've been dragging around with that York setup.

The high side hose leading from the compressor to the condenser coil takes some complicated turns leaving the compressor, so I would recommend getting (at least) both high and low side hose ends where they attach to the compressor. I had a set of new hoses made at a local shop where they were able to re-use the old hose ends between the sections of new rubber. This greatly simplified the project. High-side hose routing forward to the condenser will be different from the rotary compressor, too.

I had the AC shop making the hoses add a port to the low-side hose up on top where it would be easy to access during service. Not essential for every project maybe, but much more convenient. (For my project, this port was essential, as I ended up using a new "universal fit" compressor without built-in service ports.)

Before I was ready to charge it, I had in place a new drier, a new expansion valve, and all new o-rings, of course. Both the evaporator and condenser coils were removed from the car and thoroughly flushed.

Before I was done I also added an auxiliary electric fan forward of the condenser coil. The AC system works pretty well now, with much less load on the engine upon engaging than with the old York setup. Not a rolling meat locker, but cool enough to suit me.

This was my little project, and I'm sure I made shortcuts and detours others might not. And I know that some prescriptions for an AC upgrade recommend a better design of condenser coil than the original. My solution works for me, but be aware that there are other solutions, some more complicated, some less.

One error I made was in trying to revive that boneyard compressor. In hindsight I should have left it in the dust. A local AC shop suggested that there was enough life left in it to warrant only a set of new seals and a clutch bearing. But, it turns out the internal front bearing surface for the shaft (no bearing there, per se) was shot so there was too much radial play in the shaft for a seal to tolerate. It leaked out most of the charge and lots of the oil almost immediately. Not an inexpensive lesson. Went with a new compressor from that point (ackits.com), for not much more than I had paid the AC shop to reseal the old one.

Good luck with it!