Thinking this is the same issue I had on MY 99 XC back in May 2002 (just 3-4 months after purchase) at 40k miles (am at over 70k now). It was the driveshaft and the driveshaft seat cushion that had to be replaced. Take your XC to your mechanic and reference the following part numbers for him to inspect.
# 9183941 - Propeller Shaft
# 981507 - Hex Socket SC
What happened was a small piece of rubber on the drive shaft seat cushion came loose and was "flapping", but only under certain conditions...i.e... It did not do it all the time. In my case it only did it when the car was under 3000 RPM going on a slight uphill grade....SOMETIMES...
I drove around with a Volvo Mechanic hanging out the open passenger door with his head about an inch off the ground trying to reproduce the sound and to pinpoint it's source. After 3 mechanics and over an hour of driving around...that is what we concluded the problem to be.
They replaced the driveshaft and the seat cushion and no more noise or vibration.
I was told that not under warranty that the parts alone are over $1000USD (plus labor).
Please let me know if this helps answer your problem, or for any other questions...
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