I'm in the process of doing the timing belt, water pump, and seals on my 240 for the first time. I have downloaded all of the relevant material I can find on-line, and am attempting to follow instructions....
I have not yet removed the camshaft pulley (that is next), but I have aligned the dot of overhead camshaft gear with nub on back timing belt plate.
When looking at the timing mark on the crankshaft pulley I note that the mark is at about 12 degrees.
Does this matter?
Also, it seems obvious that the belt is going to move at least somewhat when I remove the crankshaft bolt. Why does this NOT matter?
The pulley is old, and rusty.. Likely original. Should I simply replace it even if it seems serviceable?

 

It's best to use the marks on the crank pulley for the cam belt after you get the vibration damper off. The outer part of the vibration damper can spin on the rubber part when they are old - and obviously cause the timing marks when lined up to the plastic cover to be incorrect.

It will not hurt to move the cam or crank with the belt off. The pistons can't hit the valves and do any harm (on this Volvo engine)

Most brands of cam belts have lines marked on the back of them - some techs like to use those to line up the cam with the intermediate shaft that spins the oil pump and distributor. (maybe they find it easier than making sure the mark on the intermediate shaft pulley is lined up correctly)

 

Sounds like a new pulley is in order.

 

your engine doesn't have interference, so turn the crank/cam all you like without the belt.
a sort of obvious piece of advice that I learned the hard way last month, don't turn the engine from the cam when your belt is installed lol.
maybe just wire brush your pulley to clean it up, I can't imagine some surface rust would cause it to fail, but if it's rough it could damage your belts.

 

If you wish - when they get really bad they will squeal like a loose fan belt and can fail to spin the alternator fast enough to charge especially if the ac is on - other than that if slipping only slightly there's really no problem.

 

I've ordered a new balancer. Can't hurt, and I intend to keep the car for some time.....

 

Just make sure all three (cam, intermediate, and crank) timing marks are lined up with their respective index marks. That #1 is top dead center on the combustion (not exhaust) stroke and the rotor is pointing to the notch on the edge of distributor. Doesn't really matter where the belt marks are. Check these things again after releasing the tensioner.