Ok, so I'm pretty sure that I have a blown head gasket on the exhaust side because as far as I could tell there was not any coolant mixed with oil anywhere. It just leaks right under the exhaust manifold and it smokes.

I've got some questions:
1) Do Volvos crack or warp heads easily? I'm new to them so I don't know much about them honestly.

2) Has anyone ever had any luck with K-seal coolant leak repair or Bar's Head Gasket repair, they both come in a bottle and I've never known anyone to use any thing like this to repair a blown head gasket.

 

Ok forget everything I just asked, I removed the cylinder head a few hours ago and I am 99% sure that the head is warped in the middle. I checked it with a straight edge and there was big gap in the middle.

I am trying to do this for as cheap as possible and I remember someone telling me that back in the old days mechanics would use sandpaper and a flat surface like a glass or granite table top to mill down a head and make it flat again without the use of a milling machine. Would this work for one of these heads or should I save up some money and take it to a machine shop?

 

Take it to a machine shop. Do it once and do it right.