I had a 2002 V70 XC. My wife summed it up best - "I always thought I wanted a Volvo until I owned one".

The first transmission went out about 40k. The dealer replaced it and the second one started exhibiting signs of trouble after 10 months. I traded it in.

There is an independent Volvo mechanic up the street from me. He does a steady business in V70's - he says the transmissions are not up to par. I'd suggest you go read the forums (brickboard.com). There should be enough tales of woe to dissuade you.

Finally, I thought the AWD system sucked. It was normally FWD until it detected wheelspin then the AWD would kick in - like the 1st gen 4-matic. My personal opinion of the arrangement is that you're bringing AWD to the party a little late.