Avoid the AWD. If you live where it snows a full set of winter tires will serve you very well with FWD.
As for the fuel issue there are a variety of opinions. My Volvo dealer will tell you that due to the knock sensor you can run regular under normal load conditions. I have always run premium. Maybe it's a waste, maybe not. My manual specifies 91 octane so I use it. When I have four people in the car with a car top carrier, canoe and the back of the wagon jammed full of hunting gear I am pleased to be running premium as I cruise at 80 MPH.
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