"Solid" seems like such an inadequate word when describing the Volvo 200 and 700 series cars, but even the turbocharged factory engines have a tough time grunting out the torque needed to haul all that Swedish steel with the proper quickness, especially when you're towing your bass boat. Swapping a good ol' Detroit pushrod V8 into a Volvo has long been a popular swap; so popular, in fact, that a couple of companies sell everything you need to make the job a near-bolt-in deal. You want a small-block Chevy? Talk to the folks at Jaguars That Run and they'll hook you up. If you like the smaller size and lighter weight of the Ford 5.0, Converse Engineering has a very sanitary (and Thor-approved) kit for you.
I had an '82 240 DL as a first car, in that coffee w/cream color with chocolate tweed interior. I curse the day I sold it, thinking of what could have been. Just one computer for the EFI, easy to work on. Solid as hell and it doesn't creak like my Golf.
I would definitely buy one of the same-era 2dr turbos and V8 the bejesus out of it, gut the back seats and the AC, leave the wheels stock. That would be an awesome car to smoke ricers in.