Had the same problem with a 99 V70. The engine would "almost" start and then kaput. It would turn over and had fuel and spark but no start. The Dealer replaced the immobilizer ring for $225 and REALLY wanted to sell me 2 new keys but I declined. The car started fine for about a month and then the same thing happened again. I really didn't wan't to go back to the Dealer so I reset the connector on the immobilizer but that didn't help. I then removed the engine and transmission ECU's, cleaned the connectors and reseated both ECU's. Bingo, the car has been starting just fine ever since and that was back around the first of the year.
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