You can get a DICE type unit to communicate with your Volvo.
Compression is good, no bent valves.
Overheating, possible warped head. Should have a machine shop check it and shave some off if needed.
Valve lifters are solid lifters. Do not mix them up. Solid lifters are different thickness. Changing lifters is how you adjust/set valve clearance.
You do not need to remove the starter to set the crank a “0”.
As long as the crank gear timing mark is correct, the crank is at “0”.
You should have the wing tool to hold the valve cover in place removing/installing.
Spray the injector o-rings with WD40 to remove/install. If not, the o-rings could roll or tear.
PDF is head remove/install, torque specs and valve clearance.
Set the cams and crank to “0”
Before removing the t-belt, paint mark each cam gear to the valve cover. Install cam locking tool.
Remove the timing belt. Looking from the t-belt end, each cam can move or roll towards windshield about 4 teeth. I move both cams backwards and put another paint mark on the cam cover.
With the cam locking tool in place, remove the center cam gear bolt.
Upon assembly set the cam gear to the paint marks. Tighten the center bolt a little.
Rotate the cam gears R/L. Tighten the center cam gear bolts when you have set the cams back in place to line up the 2 paint marks. When installing the t-belt, rotate the cams towards the radiator to the top paint marks. Volvo has you loosen the 3 10mm front bolts and doing a weird adjusting sequence that nobody understands. There are many here who have done this job. There are probably many YouTube videos about this. Once you remove the t-belt, if plastic cover #7 has melted some, the head has overheated a lot. If this has happened, the machine shop can shave the head if needed. It would be very rare to have a warped cylinder block. Replace gasket #35 with the updated one with a metal screen.
Use new head bolts. These are torque to yield. The bolt threads stretch some to hold the head down.
If you reuse the head bolts, they could go beyond stretch and break or twist off. Many have reused head bolts without any issue. Clean out any trash down in the head bolt holes. If any coolant is left in the head bolt hole, the coolant could build up pressure and crack the engine block.
215 : Transmission 5CYL, B5254T2
Fig. Description Qty. PS Part number
1 Timing gear casing 1.00 8658541
2 Six point socket screw 2.00 986009
3 Clip 2.00 9454716
4 Belt protector 1.00 8642372
5 Flange screw 1.00 985255 M7x48.5
6 Protection 1.00 9125469
7 Timing gear casing 1.00 30731950
8 Flange screw 1.00 985037 M8x20
9 Belt protector 1.00 9189227
10 Spacer screw 2.00 9146202 M7x25
11 Pulley 1.00 8692286
12 Oscillation damper 1.00 30731039
13 Nut 1.00 3531111 M22
14 Flange screw 4.00 985374 M8x25
15 Camshaft, exhaust 1.00 8642712
16 Sealing ring 3.00 1275365
17 Camshaft, intake 1.00 8670354
18 Sealing ring 3.00 1275365
19 Tooth belt kit 1.00 30758261 ENG -3188688
Tooth belt kit 1.00 30731727 ENG 3188689-
20 Tooth belt 1.00 8627484
21 Belt tensioner 1.00 30638277 ENG -3188688
Belt tensioner 1.00 30637955 ENG 3188689-
22 Idler roller 1.00 8630590
23 Sems screw 1.00 985504 ENG -3188688, M8x50
Sems screw 1.00 987498 ENG 3188689-, M8x53.5
24 Flange screw 2.00 985186 M8x20
25 Plug 2.00 1275364
26 O-ring 2.00 NS
27 Six point socket screw 2.00 980734 M12x72
28 Flange screw 6.00 982758 M6x20
29 Pulley 2.00 9180721
30 Pulley, exhaust 1.00 9497786
31 Pulley, intake 1.00 8642284
32 Sealing ring 2.00 9458309
33 Flange screw 8.00 982758 M6x20
34 Solenoid, exchange, Inlet 1.00 EU 36002685
Solenoid, exchange, exhaust 1.00 EU 36002686
35 Gasket 2.00 30731212