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I would start out by addressing the ignition components - since they are easiest to get to and replace (and cheapest!). Replace the spark plugs with some copper plugs (NGKs or, if you want, Bosch Coppers, and use antiseize) and replace your plug wires. The cap and rotor on mine made a great deal of difference when I replaced them, as well.
Check your breather box and flame trap, too - it may be that excess crankcase pressure is getting a bunch of oil in the intake.
As Jon suggested, check your fuel pressure regulator's vacuum hose to see if you're getting too much fuel. I've read stories on the BB about them failing spectacularly. :O
That's about it... as far as I can think... I'm new to this Volvo game...!
Ari
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