Well, I looked under the floor mats, and on the passenger side I found a puddle. You guys nailed it with the heater core leaking. Thanks for the help.

Lift the driver side floor mat and tell me how much moisture (coolant) you find.

I just did my core a month ago, and had a lake under the driver side carpet. I had to cut the sound dampening out from under the carpet, and soak/dry it because there was so much coolant that had seeped down.

Bought a Behr (which is OEM for my car at least) for $129 plus the o-ring kit for an additional $12. Total job time was about 5 hours including removal of and cleaning of carpet and the sound deadener underneath it.

Total savings in my case was probably closer to $500 over what even an Indy would charge.

go to www.volvospeed.com and do a search on "heater core" and you will find a post that has pictures of the process.

BB

I'd put money on it that you're looking at a new heater core. Check this out:

http://forums.swedespeed.com/zerothread?id=25204

but note that "Papa Kirlo" has probably referenced the wrong page. (He's usually quite helpful.)

"Adam H." makes some important comments about the Behr heater core that he bought for about $100.

From my own experience, both the UK Haynes manual and All-data (online) contain useful instructions for the do-it-yourselfer.
--
Jim Rothe, '99 S70 T5M,
http://www.jimrothe.com/volvo/index.html

You could have a head gasket seeping. As a rule you would see white smoke when you start the car,particuarlly after it sat,say overnight.You could also have an engine miss cold because the spark plug gets fouled with coolant.I would have the system pressure tested by a reliable technician,both with the engine cold and at normal operating temp.Also they should be able to find out if your headgasket is bad.