Hi GlenP,
If indeed your air pump is toast, here is a procedure to replace it with a pump from a vw. These are much cheaper and easier to find in working condition. As mentioned in the article i also got a pump off ebay for about $50+/-. The switchover was a piece of cake... very easy procedure. Link is here:
http://www.matthewsvolvosite.com/2009/10/24/air-pump-fix-tutorial-volvo/
Also I experimented with the vacuum valve(mushroom looking thing). When i took it off the motor i ran some PB Blaster thru it and it immediately leaked out the bottom. Over a couple of days I kept spraying away with the PB. Eventually the PB stopped leaking thru and the valve was sealing closed again. I suspect it gets crudded up much like an EGR valve does over time. This was 1 1/2 years ago and it is still fine... of course I did drill the drain holes into the body of the new pump.
hope this helps,
Dan
p.s. this was on a '98 s70
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