This sounds exactly like the problems I had last summer with my 2000 V70XC. Grinding/thunk led to my replacing the angle gear and the transmission. $8k total repair on a car that was worth about $8k...

Daryl - on your original post you mentioned the angle gear. This failed on my 2000 V70XC at 105k and took the transmission with it. With the cost of the repair, it also reduced the value of the...

Thanks DB and others.

The picture you posted and the explanation are v helpful. That *is* what the dealer is saying -- that the front and rear O2 sensors behaving normally, so that the fact that...

Thanks for your interest.

Codes observed by the dealer:

ECM4801 (catalytic converter efficiency (?))(code came up twice)
ECM530D (which refers to the transmission control module)
TCM0020...

Dealer wants $1017 for CC, $508 for two O2 sensors.

Car is driving great (I get nervous when I say that though). Recently getting greatly improved mileage -- at times 27 mpg hwy, and 22 city.
...

Dealer here in VT says my 2000 V70 XC 116k needs catalytic converter, and possibly new front and rear O2 sensors. Anyone have experience with non-OEM parts? or other solutions (eg Magnaflow...