Bummer. That is an unusual problem for one of these to have. How did the oil pressure loss occur? Sounded like you had done a lot of good work to the car, too bad it met with this misfortune.
Based on your description the vacuum pump overhaul kit you have is probably intended for an old VW 4cyl diesel (e.g. Rabbit or early Jetta), not a Volvo motor. All the diesel Volvos used the same pump that was on yours, a Pierburg-manufactured piston-style pump driven by a pushrod off the cam. The 1.5L/1.6L Rabbit/Dasher/Jetta/Vanagon motors initially had a diaphragm-style pump driven off the intermediate shaft that frequently requires rebuilds involving new diaphragm and O-rings. (Later ones changed to a rotary style pump) You might try offering this rebuild kit on ebay or a VW IDI board since it's unlikely to be of use to those seeing it here...
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