Yes, it is where you suspect it to be.
There are a few (2?) torx screws to get the panel under the glove box out. After the screws are out, the panel slides out towards the passenger side door. Now, look up (way up) under the area under the glove box. You'll see a rectangular box hanging down with a black cover on the bottom. Again, 4 or so screws to get this cover off...if I recall correctly the screw are smaller than the ones that came out when you took the panel off (but still torx). Once the black lid is off, the air filter is slid up into the box and you'll have to pull it down and out. It is made to bend as you pull down. It will not come out straight. If yours is anything like our '04 V70, it has one of two filters. You'll notice room for 2 filters in there. The thinner one in the front is cheaper and looks more like a regular filter. It is for the regular climate control system. The other one (in rear) is thicker and takes out more pollutants and is for the climate control system with ECC (which automatically senses pollutants and turns the air on in a way to filter it before it comes into the cabin). You'll need to decide which one you have and order the correct one.
Do not put two filters in the filter box. It isn't made for 2. Here is a good place to order them from (with part numbers): http://www.fcpgroton.com/P2Series/P2tuneup.htm
The thicker (for the rear slot) one is for the climate control system that has ECC and it is $27.50 while the other ones are $15 (thin, regular) and $20 (thin, charcoal activated). If yours has the thinner one that goes in the front of the filter box, you'll be happier spending the extra $5 and buying the one with activated charcoal for better filtering of contaminants.
Hope this information is helpful to you.
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon. My cars have been running so well lately they've got me worried.
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