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I believe your problem may be because of carbon buildup on the valves. These 5 cylinder engines are prone to this buildup if they are used often for short trips and/or not "opened up" on the freeway periodically. This happened once on my previous 850 (about 5 years ago), and recently on my 99 S70.
If so, then what you have to do is this:
Begin with the key in OFF.
Turn the key to where the dash warning lights come on, but not enough to turn over the engine.
Push the accelerator pedal to the floor for a few seconds, then let up slightly.
While keeping the pedal in this position, turn over the engine until it starts.
It may take 5 to 15 seconds to start, and after it does you will get a bunch of black smoke out the tail pipe as it burns off carbon.
Take it out on the road and do an "Italian tune-up", i.e. using a lower gear drive it continuously at about 4,000 RPMs for 2 to 3 miles. This will burn off the carbon.
Best to change the oil after all this as fuel could get into the oil.
This was recommended by a very good Volvo dealer and an 20 year Volvo indy mechanic. Worked both times for me. The mechanics also told me that I might need to replace the spark plugs if they get fouled by this, but I didi not need to either time I did this procedure.
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