many people have done this (turned their AWDs into FWDs) and you'll find their posts all over this forum and others. Basically just removed the driveline that connects the engine to the rear diff and you've got an FWD.
You said you changed the trans fluid and rear diff fluid?
You should also change the fluid in the 'bevel' gear, which is bolted to the pass side of the trans in behind the block. It's where the center driveshaft gets its power and it is known to need fluid changes. I think KlausC normally recommends ~50k mile interval?
Information about what fluid to use is here: http://www.brickboard.com/AWD/index.htm?id=1311206&show_all=1
There's advice on how to do this all over this board and others, but Bay13 has a good article about it:
http://volvospeed.com/Repair/AWD_bevelgear_diff_service.html
How did your Rear-diff fluid change go? I'm interested in doing this but never have found the fill hole, though I know it's supposed to be on the front (facing front of car) side of the diff, on the driver's side.... What gear oil did you use? There was a brief discussion about this earlier as well that perhaps you have something to contribute to?AWD Rear Diff Fluid Change?
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1998 V70 AWD Turbo 190k+
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