Ok,
I changed the fuel filter and distributor cap/rotor and still we have the problem. To re-cap, the engines acts as if it runs out of gas intermitently. Sometimes it starts right back up and sometimes it has to sit for up to 15 minutes. I read now where it might be the fuel pump relay. Here's what I've found on that. Dealer says there are two relays. A fuel system relay by the drivers headlight for $39 (He keeps these in stock). Then there is a fuel pump relay in the relay panel for $114.00. He does not have this one in stock and cannot see where he has ever ordered one. I read where if the fuel pump relay is more than 4-5 years old it should be replaced. If this is true, why would the dealer never have had one in stock? Seems this wouold indicate a high degree of reliability. Could it be the FUEL SYSTEM relay is what needs to be replaced every 4-5 years. I have no problem doing this. $39 is not bad even if it turns out to only be pre-maintenance and does not fix the problem. I don't want to spend $114 to PM something that probably would have lasted a much longer time. Any thoughts or feedback would be greatly appreciated.
Thanks!

OK,
I think it's definately the fuel system relay. This relay on my car is located above the fan. It slides into a groove on the top fan cowling, the fan relay is located right next to it. There is another relay for the fuel pump on this model in the fuse box area. It is the expensive one. These rarely go bad evidently. The one near the fan is $38.01 at the dealer. These go bad a lot evidently. I Took it out and cleaned the contacts with wd-40 and reinstalled it and so far it's working. However, I feel when it gets hot aagin it will fail. I will be replacing it either way. $40.00 is a cheap fix any way you slice it. Thanks for all the help, I figure this message board probably saved me $200 or so on this one.

Did you ever get an answer on your FUEL SYSTEM RELAY (near the dirvers headlight for about$38-39) and the FUEL PUMP RELAY (also called FUEL INJECTOR RELAY by dealer) for about $63-83 ( you said $114 so this part must real vary by dealer and who you talk to) and located near the fusebox or relay panel.

Everyone says I need a fuel pump relay and its only $39 which is inconsistant. Did you get any clarification?

This may be too simple but it worth a try. I had a similar problem with mt 1994. It would periodically die on me, usually at lower speeds and going around a curve. The engine would turn over but not start for 15 minutes. The last time I couldnt get it going period, all lights and turning over but no catching of the engine. Tow it to a dealer and they found that the computer was not getting any current. All they did was clean the wires to battery. Its not had this problem for six months now. Worth a try. I've got other starting problems now but not while driving. I may try the fuel system and fuel pump relays next.

It could be a variety of things. Could be the ignition coil, could be a clogged fuel filter, could be dirty injectors, could be vapor lock in the fuel lines.
--
96 850 GLT 5-Speed- Sold due to astronomical repair costs.

I bought fuel pump relay for about $36 from Volvo dealer
(I'm in Gothenburg). This, or fixing a loose vacuum line
on the same day, solved a similar problem for me.

Dmitri