[v8volvo]

You are on the right track but unless you know that it is worn out, or it has been sitting forever, I don't think it will even need all the things you are concerned about doing to it. If it runs well and shows good readings when you test the compression, and you can verify that the heakgasket is intact (do the bubble test to see if it pressurizes the water jackets with compression pressure), then there is no reason to take the head off. Unless someone has really abused it, or the injectors are extremely worn, or someone let the timing belt break, the piston crowns will be fine and if compression is good then the bores will be fine too.

I would get it running, try to run it long enough (with coolant in it) to get it warmed up a bit and all the scuzz from sitting burned/scraped away, then test compression and go from there.