Head gasket job, worth it?

[Sveedy]

I don't see how an overheat would affect the bearing of an accessory like the AC, alternator, or power steering pump.
It sounds like it has to be either the water pump or a rod bearing. And, though I can't say from experience, I would think that if the water pump bearing got so loose that the impeller was hitting it's housing, that it would have more of a clatter like sound.
As 454 said, a real stethoscope would be a good idea at this point.

[kallekula]

Buying a used engine is, depending of car ofc, like one down payment on a new car. Sort of. What’s the condition of the rest of the car?
Only you can decide if it’s worth it. I didn’t watch your videos but spun bearings because of overheating? Nah. I bought a few S40s (the model without coolant level sensor) a while back but no one had any worn down bearings. In fact, one of them I did a more extensive engine rebuild on and I couldn’t tell if the bearings were new or not. It had 160K on it.
EDIT: look at picture #2
viewtopic.php?t=82312&hilit=350

[MoVolvos]

"Your car uses a system called Continuously Variable Valve Timing

On a 96? My engine doesn't.... no phaser on either cam, just standard pulleys .

[Roger_850T]

You ask if it's worth it. What's the rest of the car like? We know it's 26 years old. How many miles? What's the interior like? How much rust is on it? How well has it been cared for over the years?

If it's nice, with little to no rust, and a nice interior, and good paint, (looks good,) then it's worth bothering to fix it. Whether it's a head or an engine swap, it would be worth it to keep it going.

On the other hand, if the interior is torn up, if it's rusty and corroding, if the paint is in poor condition, then maybe it's not worth fixing, and the money might be better spent on a replacement.

I hope this helps!

Roger