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It turned out to be a cracked fuel injection rail. car in front of house, mine, went out to go for a run on the beach. started car sitting on curb putting on my sandy running shoes, notice something leaking from under engine bay, it still dark out like 5:00 AM I duck down to see what is leaking so prodiguously I couldn't tell stuck my arm under to get some on hand so I could sniff about then it ignited and threw flaming gasoline all over me in the squated position I was in I jumped up started patting myself down I'm ablazing, of course no one up in the neighborhood at this time of the day. garden hose between car and house I lived on an Island in New port Beach and no way going for the hose car a flaming mess of course still idling away pumping fuel on fire I finally got my self out about the time fire truck and meat wagon arrives. they haul me off to Hoag Hospital put car out B-4 it starts house on fire. 6 weeks later I'm released.
a few years later we living on Big Island Hawaii I have a '91 240 wagon, I'd noticed fuel on ground, raise hood ask wife to start car while I'm peering inside engine bay, fuel spurting out, the fuel rail cracked. I remove take to a friend to braze up well it musty be some unobtainiaium from Sweden it just keeps cracking I bought a new rail fro mainland so watch those fuel rails they just might get you, Bill:thumbup:
 

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One thing I always do when buying an older Volvo is to clean the wiring harnesses for the fuel injectors and wrap them with flame retardant electrical tape. The sheathing for the harnesses will crack over time (20 years!) especially with turbo engines (high heat). I had fuel injector harnesses arc together and start a small fire in my 1990 740 turbo many years ago. I had the head redone and the mechanic that installed it accidentally overlapped the 2 harnesses with cracked sheathing.
 
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