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Hello,
Are you sure you installed the correct style of thermostat?
What is the temperature of the thermostat you installed?
The one for a B18/B20 engines is not common.
If you have the wrong 1, it can cause the engine to run hot.
If the radiator cap is old, it would not be a bad idea to install a new one as it will not be expensive.
If you have the original style of radiator, the cap is not easy to find as it is a 1" deep neck.
The more common caps are for 3/4" deep necks and will not seal correctly.
If the cap is higher than 7lbs, it most likely will not be the correct 1.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502
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