Yeah, the angle gear explodes, some before 100K miles.
This can be fixed though. The epoxy method doesn't seem great to me, but the welding method does seem like a good long term solution. The other options include buying a new angle gear, or running it as FWD only.
The differential module can overheat and fail. Suggest changing fluid, look into forced air vent or perhaps the Xemodex solution.
Timing belt, every 70K miles. Do not test your luck with a 105K timing belt interval.
Trans is questionable, but reliable if you keep fresh fluid in it and aren't interested in going too far past a basic bolt on car. There are some issues with the valve body IIRC.
Good thing you don't have the factory radio anymore, those things suck. All of them.
Anything electronic can and will fail eventually. I'd suggest finding a good Volvo shop near you or figuring out how to get the ebay DICE knockoff to work. For example, the DIM (Driver information module) aka the instrument cluster fails on those cars. First signs will be the screen in the bottom left showing signs of being glitchy. Again, another thing you'd probably want to visit Xemodex for instead of the dealer.
As a sign of good faith to the car, you should probably have the timing belt changed along with the tensioner, software updates performed at the dealer and pickup a set of Volvo spark plugs. The plugs were due 2K miles ago IIRC, so unless you have proof it was done, I'd do it.
Then install the spark plugs, clean the fame trap, and change every fluid in the car. I mean every fluid. Differential fluids, make sure you get all of them, brake fluid, transmission fluid etc. Power steering and coolant are not typically an issue. But the pre 06 power steering reservoir sucks and will eventually start to seep fluid. I don't know if the 06+ reservoir will fit. I'm tempted to try it myself.
There's also this interesting thing they call the "EBD" or the exhaust bracket of death. It's the near the rear, and if hit just right, will take out your exhaust and driveshaft.
Turbo control valves sometimes fail. People try modified MAC valves like phuzzy motorsports (http://www.phuzzymotorsports.com/shop/index.php) or IPD sells. Sometimes they work better, some find they don't. Sometimes the wastegate needs to be adjusted before it'll work properly.
Same goes for getting a tune. Out of all the options, I'd suggest avoiding Rica. They've had some unresolved issues, and they wouldn't return my emails. Instead I'd suggest ARD (http://www.ardtuning.com/) or IPD (http://ipdusa.com/). IPD sells the MTE tune.
I believe the Ebay downpipe/exhaust actually fits. OBX branded. Do some research on swedespeed or volvospeed.
Intakes are pointless on these cars. Some have noted reductions in MAF readings and lowered boost levels with aftermarket intakes
Getting a silicone intake tube and what they call the R Kelly intake is about all I'd suggest. R kelly intake is now the intake that IPD sells here: http://www.ipdusa.com/products/5679/113179-r-model-intake-kit
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