I've had an 03 XC70 for about a month now and love it (about 130K miles). However, I had the oil changed/alignment checked at an independent Volvo shop two weeks ago and shortly thereafter we started hearing a noise. High-pitched squeak, every 1/2 wheel rotation or so, from 1 to about 11 miles an hour. Then it goes away. It's completely silent in reverse. Sometimes it is louder (more noticable) than others.

We took it back to the shop that did the alignment and they listened to the squeak and diagnosed it as needing a new driveshaft, around $1,000. Needless to say, I'm not feeling great about that shop right now.

I've trolled the forums and it sounds more likely that it's an issue with the parking brake, or possibly lubrication of the driveshaft/cv joints?

Has anyone experienced similar symptoms or could offer any advice? There's no tremble or vibration while driving or turning which leads me to think it's not the driveshaft. And I just checked the center-cap bolts (rear weren't very tight) but the noise didn't go away.