Is the V70 different than the 850?
The line going towards the radiator on an 850 goes to the EVAP purge valve, mounted on the back of the radiator. Expensive part, about $170. A lot of people replace them, and the error remains. On the 850 the EVAP canister is in under the fender in front of the left wheelwell - the lines snake through to the engine compartment.
I checked my purge valve using a Volvo test procedure. The valve checked out. My canister was not full of gas, and my lines seemed fine. I put it back together, and around this same time I replaced my fuel regulator. Whether it was related or not, my car never threw the EVAP code again...
Here is a picture of what is claimed to be a common area an EVAP line breaks, back near the fuel filter on an 850 (scroll to the bottom of the page):
http://www.volvospeed.com/vs_forum/lofiversion/index.php/t105262.html
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