Deimos,
Whichever route you take in re-powering your Volvo I'm sure it will be a cool experience. Please keep us in the loop whatever you decide. We're all automotive enthusiasts in here.
George is right, I too recall a guy in the TDI Club Forum putting an ALH-spec TDi 4-cylinder into a 245 with a 5-speed transmission. It is a real slick conversion, I believe that car and owner are in California.
I'm not interested in manufacturer or brand warfare. You're asking about re-powering your Volvo with a diesel engine on a Volvo Diesel Forum. I would expect people to chime in with a D24T suggestion. If you don't want to utilize the factory route please feel free to try something different. I for one would like to put an Isuzu 4BD1-T into a FZJ-80 series Toyota Land Cruiser. Yes there are factory diesels (in ROTW) but I think that Isuzu is the bees knees!
Keep us updated on your project!
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Jim
1985 Volvo 740 GLE turbo diesel 
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