lingon300k
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Drain the oil and coolant.
Remove the head: not too difficult on red blocks, thankfully.
Take it to a machine shop to have it checked to see if it's warped.
Make certain all mounting surfaces are very, very clean before putting the new gasket on.
I've done it with and without using Copper Coat Gasket Sealant: it seems to help seal it better than leaving it naked.
Look at the head bolts, replace if questionable.
Follow instructions for torquing bolts, and make certain your torque wrench is calibrated correctly; I did it one time and didn't realize the wrench was way off: epic fail.
I'd consider replacing front seals, timing belt, tensioner, drive belts and any dubious hoses while your're at it, and also clean the intake manifold, esp. the throttle body.
Should I be concerned about a crack in the head or the block? Is that typical with these engines?
I'd never heard of spraying anything on the head gasket. I guess I'll look into that further. This is the gasket I was planning to buy: https://www.fcpeuro.com/products/volvo-engine-cylinder-head-gasket-940-740-760-780-244-245-240-242
All of that is on the list. Also planning to go ahead and replace the head bolts. My biggest concern, honestly, is the exhaust manifold. I'm worried about the studs cracking and needing to be extracted. Everything else looks pretty doable. I'm a bit concerned about my torque wrench, because it's a few years old at this point. (I have a friend who owns a bicycle shop and has told me multiple times that torque wrenches are worthless after a year or so.)
Do you know roughly what I should expect to pay at a machine shop, for inspection and for machining?
Is it likely that I'll need a thicker gasket after machining? I've seen in a few places that it's usually not necessary with this engine.
A crack big enough to spray (not seep) water should be big enough to see. You're also unlikely to crack anything by overheating it for 30 seconds. Warp, maaaaybe. My motor's been overheated more often and for longer than that...
Again, is it visibly spraying from the gasket interface, or is it just wet in that area? Have you ruled out other sources of coolant?
Yes, you can get spray products to help seal gaskets. Apparently some old timers used high-temp silver lacquer spray, since it's made with aluminium particles. Personally I'd go for a purpose-made gasket sealer spray:
https://www.amazon.com/Permatex-80697-Gasket-Hi-Temp-Adhesive/dp/B000HBNUDQ/