My wife and I just bought a project car from an auction. We bought a 2004 XC70 w/Turbo. We bought the car with the intention of fixing it up (repairing any issues, doing all the maintenance) just to have something to work on together, and learn a little about cars.

We picked the car up and knew nothing about the car other than the power steering didn't work. A quick inspection revealed the reservoir was basically empty and the return hose on the pump was very lose and I could see where fluid had leaked onto the alternator below. The first thing we did was fill the reservoir and tighten the hose. I then replaced the brakes/rotors/and one of the calipers (I broke a bleeder valve)/and flushed the brake fluid.

We then decided to take the car for a test drive to see if there were any other issues we weren't aware of (this was our first time driving it other than to put it on the trailer). So, evidently our power steering issue goes beyond the lack of fluid, because even with the reservoir full and turning the steering wheel back and forth to circulate the fluid through the system there is still no power steering. I'm assuming the pump is bad, which I will replace unless some has another suggestion. However, this is not the issue I need help with.

When the car is slowed down to <20MPH it makes the loudest metal on metal squeal I have ever heard. It does not track with engine speed, but tracks with vehicle speed. The squealing is most noticeable when approaching a stop light and you slow down to <20 MPH, but when you get above that speed no noise, no matter if you brake, or turn the steering wheel. Just happens at the low speed, like idling around the parking lot with foot off the brake and going straight.

To troubleshoot I took the car home and parked it in the garage, and by accident, with the vehicle turned off I leaned against the front bumper pushing the car back a few inches I noticed the squealing was happening. So, with the vehicle off sitting in the garage I was rocking it back and forth a few inches making it squeal. I then jacked the entire front end off the ground and spun the tires around and found a spot in the rotation where the noise happens. It sounds like the noise is coming from under the car right in the center between the front two tires. I disassembled the driver's side wheel thinking it could be a wheel bearing, but the wheel bearing seems good to me, no binding or noise. I also pulled the axle out of the hub and spun it, no noise.

I'm at a loss of what to try next. Any help would be greatly appreciated.