The lack of power in my Volvo was quite simply explained.
Last night I was working on the car and started to change the distributor rotor arm. As I was removing the distributor cap, it just completely shattered in my hands

The ignition leads seemed like they have never been changed before, I bet if I twisted them, they would snap in half.
My local spare parts dealer didn't have stock for the leads and the cap(funny, because they have 30 pieces of the B14 distributor cap in stock), but I placed an order and if I'm lucky, I'll have these parts today. If I'm not, I'll have them by monday.
I also changed the oil for the engine and diff. Gearbox oil has recently been changed, because it was still clean. I don't think the first owner ever changed the diff oil, because the few drops of the old oil the diff still had in it, had burned very badly and was grease-like.
So, my VW is now built temporarily back together. Thank god I have 2 cars now. Might as well take the VW to a MOT test now so I don't have to worry about it in the spring.
All the best,
Tero