I found a short thread on the S40/2000 line that dealt with the actual process of replacing the wiper arm.

My question is more along diagnosing the problem.

Wiper arm has lifted up such that it now interferes with opening and closing the hood. When comparing my 2001 V40 setup to my wife's 2002 S40, there about a quarter-inch (half centimeter for the metric types) difference3 between the top of the two arms (mine versus my wife's). There appears to be the same space difference between the arm bottom and where the spindle passes through the metalwork.

The local non-dealer Volvo shop has taken a kick at the situation and trid to tighten the arm and the situation has slightly improved (light scrape versus the old thunk as the hood is lifted or closed.)

When I grab the wiper arm, there appears to be a certain amount of flex in mine that isn't in my wife's.

Questions: Do I take another shot at simply tightening the setup? Could the wiper mechanism come loose on one side and have shifted so everything is higher than it was before and how do I address that? Just spend the bucks and get a new wiper arm and drop it in?

That's the first thing I noticed when we bought our '01.
It is a very common issue. What a dumb design. But obviously it did not come from the factory like that.

Rumors have it that the arm gets bent by trying to clear snow with the wipers.
I've heard that you can possibly bend it back. I just put light pressure on the arm when opening / closing the hood. It is kind of awkward, but it does keep it from rubbing.

Also heard that installing a new arm will fix it. I haven't done that. Too cheap! I'll just keep pushing it instead. It does get on my nerves though.

I did some chasing around to acquire a used set. Looks like this part isn't valuable enough to salvage..... (:-( (sad face)

Having fun right now with my other main problem -- getting the blower motor resistor replaced.

Only other problem that I have is that I went to the dealership last weekend looking for the resistor. My wife walked the JRT (Jack Russell Terrorist) and looked at the used cars. Yes, sad to say, if my next trip to the local non-Volva garage results in a big repair bill, my V40 is on the sales block and someone (not me) will be getting a newer car while I wind up driver her old S40........ (;-P) (Tongue in cheek and winking)