Volvo: 1997 850 No Start, volvo dealer, leakage test

Question
Hi Ray,
I've had a 97 850 Turbo for about six months and have had no problems.  A week ago, after sitting all day, the car would not start.  It cranked fine, but would not turn over.  I had it towed to a Volvo dealer and they told me yesterday, they can't figure exactly what's wrong with it.  It has spark and fuel, but 2 of the cylinders have low pressure.  They've done some diagnostics, but can nail down why the pressure is low.
The guy started talking about a new engine, or spending 2-3k to see what the problem is (head, valves, etc) and fix it.
My question is, shouldn't they be able to diagnose exactly why the pressure is low?  I'd hate to sink that kind of cash into a 10 year old car (though it is really nice and well maintained) without knowing exactly what the problem is.
I'd hate to junk the car, but don't want to throw money away either.
Any advice?

Answer
Pete,
Yes they should be able to tell more by doing some testing. I would ask to speak to the service manager about the car and see if he can better explain the inability of his tech to tell you more and why you "need" a new engine. A cylinder leakage test will tell you where the loss of compression is going. It is not a real fun test to do, but then you are paying for an expert opinion.