bigjl - I see the same effect here (people buying older high-end cars that have been neglected because the price is low...and then getting eaten alive by the cost of repairs), particularly among the sailors in the US Navy...lots of S-class MBs, 7-series BMWs and the like..."no car is more expensive than a cheap Mercedes" is an old adage...
As far as GHT and this car - sounds like he's found a reasonable mechanic to work onthe car (the video discussion was a walk through of the basics of brake maintenance, as if answering the question "how do I fix this?").
If the Timing Belt HAS been replaced, as GHT's mechanic believes, that is a huge relief, both in $$ and in reliability worries. GHT - don't put anything on the TB itself...none of that stuff (soap, belt dressing) will do anything to help longevity. The belt will last longer if it is simply kept clean (cover intact) and the oil leaks are repaired quickly.
Next reliability area (remember, safety first: fix the brakes, reliability second, cosmetics third...) would be the flame trap on this car. Volvo PCV systems (AKA Flame Trap) are known for plugging up with sludge if the car has not had the oil changed using the correct specification (ACEA, not just viscosity)...and given all the other neglected bits on this XC, I would place it in this category...a plugged PCV system will cause all sorts of oil leaks to spring up as the pressure forces its way past the seals in the engine, some of which are very difficult and expensive to replace.
Based on what I know so far, after the TB is verfied to be OK, here is my list:
1. Rear Brake replacement (pads, rotors, splash guards, maybe calipers, check hoses carefully.)
2. re-solder ABS module
3. flush brake fluid - use DOT4
4. check PCV operation, clean/repair as necessary - a kit may save you $$ in the long run if it's really bad:
http://www.ipdusa.com/products/4988/1141...-v70-xc70-turbo
5. flush transmission fluid, since it's DEX III, get 4 gallons of Maxlife on sale, then do it yourself with this kit:
http://www.ipdusa.com/products/4808/107945-automatic-transmission-flush-hose-kit - you'll find that the kit is cheaper than the o-rings and clips alone from the dealer.
6. replace angle gear oil - don't bother with Volvo fluid, use M1 75W90 - meets spec and is one third the price. Best way to do this is with a fluid extractor or Mityvac pump. You can drill to make a drain plug, following this:
http://volvospeed.com/volvo_repairs_how_tos/transmissions_driveshafts/awd_bevel_gear_service.html but I have found that a Mityvac works fine.
7. replace the rear differential oil, same as angle gear, you need a fluid extractor and 1 QT of M1 75W90.
8. Tune-up, replace the sparkplugs. Nothing fancy, regular plugs are fine. Clean the TB, replace the air filter.
9. change the oil again - 5W30 synthetic, with new filter, o-ring and drain plug crush washer...Your first oil change has started cleaning...you want to keep that up.
Have the following checked: front brakes, CV joints, (including boots) and driveshafts.
Good car soap and a decent wax is less than $10 at any parts store...wash and wax it some time prior to winter. I've found that Turtle Wax Trim Restorer works best on the Volvo plastic cladding.
