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I have to disagree with that...plenty of Volvo B21/B23/B230 engines out there with 200k+ miles (so 330k+ km) that don't burn/use that much oil. There was just a post on this on the 240 section of the board. My 1988 740 Turbo with its original non-rebuilt turbo and 240k miles uses half a quart in 3000 miles.
As to the PO's questions, check the FAQ. Eventually the seals will go completely and the turbo bearings and rotating group (shaft/compressor wheel/turbine wheel) will be damaged. Better to do the rebuild before that happens.
Zack
1980 245DL M46 294k
1988 745T+ M46 240k
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