4 months ago, after my 2001 V70 with M56 started running a bit rough, I got the worst news possible from my mechanic. Lost all compression in Cylinder 5. Burnt and broken valve, motor is toast at 236,XXX. 

Luckily, I looked on eBay and found the B5234T3 motor from 2001 with 74K and a year warranty. Even better the engine was close to my job at what turned out to be the nicest breakers yard I've ever seen. Building was climate controlled, they pulled down the motor for me to see even before I needed to pick it up. They also pulled out a cart with a laptop where they showed me 2 Videos of the car running, one from inside the donor showing the odometer with accurate miles and no check engine lights, the other video from outside the car running smoothly. I couldn't ask for a more confidence inspiring purchase. The kicker is, because I didn't buy it off eBay, they knocked a considerable amount of money off the deal. I could just have the shop throw this motor in as is, but I'm going to have them reseal the whole motor and do timing belt and water pump. Might have them throw on an IPD downpipe for good measure. Any other advice for things to replace proactively would be welcome.

Moral of the story, there are plenty of resources to keep these cars going and second, support your local car yards. There are some out there that really support the enthusiast.

V70 T5M Soon to be Back from the Dead