Thanks to all who responded. What the mechanic said was that in this case, oil was spewing out of the turbo intake tube, which makes sense to me because I could tell that oil was spewing onto the frame from somewhere and then dripping off over time. Some of the seals are almost new because I've been working on this leak for awhile.

5 hours is about right to change out the oil trap box. The seals on those boxes are notorious for leaking and every once in a while you will find one that plugs up and starts blowing past the other oil seals. It sounds like they are taking the correct route in that they are recommending to replace the various vacuum lines and rubber elbows under there. Sounds like they've been there and done that. I typically charge about 5 hours to do the same job in my shop, the only difference would be in how much they charge per hour. At 50.00 in parts it sounds a little on the light side, I alway replace the long breather hose that goes from the intake hose at the back of the motor all the way around the block to the front edge of them motor at the oil trap box. That hose is about 40-50 bucks by itself. With any luck this will fix your oil leak. When this box plugs up and does not allow the motor to vent properly it does not "break" seals but it does cause the pressure to build to the point where it blows past them. The idea is to stuff in a new box which will allow the motor to breathe properly and you will no longer have that pressure blowing past your seals. There are so many nooks and crannies on those engine blocks that it could easily take a week or more for it to quit dripping oil so do not expect it to be fixed immediately. Give it a week or so to evaluate it.

Mark

There is a flame trap and an oil trap. The oil trap is located under the intake manifold and is a bear to get to. I have a 960, same engine but with one more cylinder. Mine is also rear wheel drive, yours being front wheel drive makes things more compact under the hood, so it may be even more of pain to get at.
With the age of your car, a new oil trap and new hoses are very likely. Sounds like they are taking the easy and cheapest route to find your oil leak. Who knows, if this takes care of the excessive pressure, the seals may stop leaking, not likely but worth the try. I don't know enough about the workings of FWD so I cannot comment on the hours to change the oil trap.


DanR 94 964 280,000 miles (46,000 on the new engine)
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DanR

I'm not sure what the "oil trap" is I always thought it was the flame trap...... the part that goes on the intake tube right before the fuel injection, it takes no more than 20 minutes to get to it. I have an 96 850 and I thought I had followed the entire PCV system to clean it out. If there is an oil trap, I don't know about it. Maybe someone else can help out here. I do know that they are correct on the system having too much pressure and causing the seals to fail. Also, some Volvo dealers are a little high on their labor charges, and then they estimate high on top of that. Nothing wrong with getting a second opinion.