I have run into this before . Volvo wants you to buy a special tool to properly set these cam's in time since the cam-drive pulleys are oil advanced . That's fine if you have up to $300.00 for the tool . I made 1 for under $20.00 . Here's How - Buy a 2in. by 7in. by 1/4in. piece of flat steel . 1 - Measure & mark 2in from each end (Length wise) . 2 - Measure & mark from the previous marks 3/4 in. towards center (Width Wise) . 3 - cut out space between marks (Finished product will look like a flat horse-shoe) . 4 - Put (flat horse-shoe) in a vise length wise (TABS UP) . 5 - bend each tab 1/8in.out from straight in line oposite directions (When done if you look straight down the lenght of the tool the tabs will make it apear the 1/4in piece of metal twice as thick)(1/2in.) 6 - Pull valve cover and look at the fire-wall side of the cam-shafts 1 side will be small half moon up(slots in cam will give the apearence of a small & large half moon) 1 small up and the other cam small half moon down . 7 - slightly turn the cams left or right to be able to fit tool in slots . 8 - With tool in place re-install cam-drive belt w/# 1 piston at TDC . 9 - adjust tensioner with very little tension against belt ( grab belt w/ tensioner tight above and below tensioner you should only be able to twist belt no more tha 1/2in. either way ) Bolt her down put her back together ( remove tool ) put valve cover back on & fire it up . GOOD LUCK!!! hope this helps you out .
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