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The ride on the hydraulic suspension cars is very smooth, but you will have very little body roll and very good handling.
If it feels squashy and is sensitive to crosswinds, take a look at the bushings in the links on the rear suspension. I suspect you will find torn rubber and displaced bushing (the steel sleeve must be centered on each link bushing). Typical by this age.
The steel center does not move, it's bolted down tight, and the rubber flexes as the suspension moves. This contributes quite a bit of spring effect, and if enough are bad, the rear suspension will be soft. Normally sags, but the the level control will keep it at the correct level reguardless of link condition.
Probably a good idea to do all five links on each side -- thrust, torque (usually called control arm stay in the on-line catalogs), camber link, tie rod, and both bushings in the spring link. All but the latter are fairly easy. You will need a four wheel alignment after replacing the tie rod.
Make sure the links for the sway bar are good, too.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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