Ok you have manual lifters so that throws one idea out the window.

On to the second one at hand. It really doesn't matter if the cam moved 2 to 3 teeth or not. It will move some when the belt is off. The vvt is hydrolically controlled by the oil pressure. When the car is off it will move some. As long as it didn't move to far you will be fine.
Also if it turned over by hand pretty easy then they shouldn't have bent.

Also the timing marks are marks. They call them TDC but yes they really arent TDC.

If all your marks are lining up then the normal ones line up all should be fine.

 

Thank Tech, for the answers.
When I took the belt off, as stated before, I was very very careful to put the cogs back exactly as found, even when I did not align the marks, I did align the marks I made as to put them back tog.
When turning the engine by hand, it was difficult at first, so I might have bent the valves, but it does not make sense that the timing was out enough to have caused it.
I am on the verge of sending it to the volvo dealer and let him/them straighten it out.

 

ehem.. just because these engines will bend valves when spinning at 3000 rpm, dont think for one second you have enough *** in your arms to bend the valves. it wouldnt have slowed down, you would have heard a distinct "ting" and the engine would have stopped turning. what you are probably feeling is the compression being built up in the cylinders, im assuming you didnt remove the spark plugs, you didnt say you did before..

i suggest finding the factory marks on the car, slowly hand turn the engine (after you remove the plugs) and line up first the crank, then look at the cams and their marks should be pointing straight up and you can line them up with the little belt cover at the top of your engine. get there first, if its off a few teeth then go ahead and line them up. from your compression numbers they may be three to four teeth off, but hopefully not more than that. i wouldnt even think that five or six teeth would hurt, but i could be wrong..lol.. then someone can help you with the tensioner alignment/installation.

 

I would like stated line up the original marks. Then go from there.