Dale question 6 not sure what a k jet is.
Bosch K-Jetronic (aka K-Jet) is the type of fuel injection system used on the car. It's basically a mechanical system which is highly dependent on correct fuel pressures and the absence of vacuum leaks.
So -
You have spark? Good. That suggests the coil, the ignition module, and Hall sensor in the distributor are okay.
It tries to run on ether? Good, that suggests the cams are working and there's enough spark.
So this could mean the K-Jet system is doing something dicky.
I may be wrong, but doesn't the cold start sensor only operate when it's bloody cold? Like, well below 0C?
You can answer this question yourself by searching in the Oz Volvo Technical Archives for "tp12044" which is the factory Green Book guide to K-Jet troubleshooting.