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Several comments:
1. When you change the timing and balance belts, change the front seals AND the oil pump pulley bolt and tensioner bearings as well: see the FAQ. Use the gray OEM Volvo Viton seals, not the red silicone aftermarket seals. They last longer.
2. Have the cooling system pressure tested to find out whether you have a head gasket leak. Clean off the engine with Simple Green at a self-serve carwash, then add fluorescent dye to the oil (get this from NAPA for $3) and have your mechanic use an ultraviolet lamp to trace oil leaks.
3. The low idle may be due to a dirty throttle body: clean this.
4. See the FAQ for information about your car and engine.
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