I don't have any specific advice about this job for you, but I can tell you the tire wear you're seeing is from excessive toe-out on the rear tires. Most people thing of their tires as pointing 'straight' forward, but they're supposed to be toed in/out a bit depending on the geometry of the suspension and all that. Your owner's manual should list the spec, and there are precise specs from the manufacturer.
As an owner of a AWD myself, I can tell you from experience that most alignment shops simply ignore the rear tires completely. If you ask they will probably tell you there is no way to adjust the toe on the rear tires. Don't believe them for a second.
Again, I don't know how to do it on your car, but on the 1998 AWD I own there are 'stay' rods that attach from the hub carrier to the central stationary structure that holds the differential. The differential end of this stay rod has and eccentric bolt that allows that end of the link to move in or out relative to the wheel, causing the toe to change. Your S60 likely has a slightly different suspension and may have different adjustment points, but I'd be VERY surprised if they weren't there.
Make it a habit to ask at the alignment shop for a printout of all alignment values for front AND rear, before AND after. Any alignment shop worth $.10 will gladly supply this free of charge and without complaint. Ask about all this when you set the appointment up, and if they seem reluctant at all about it then simply thank them for their time and find a shop that doesn't feel uncomfortable about it. A handy trick I have found is to ask the local "imports" indie (who likely doesn't have his own alignment machine) where he takes cars to be lined up. Any shop that doesn't have their own alignment machine will do, but the import guys may tend to be a bit pickier.
I found a local place by way of recommendation from the local imports indie, as I suggest above, and found them to be the best in town by a long way - and I've been a few places to be sure. I had become so exasperated by poor alignments that I even brought a printout of the specs and adjustment procedures along with me (to my wife's horror - it /is/ a bit insulting). They were actually most appreciative to get the factory manuals and specs, esp for the rear. A /good/ shop will want to work with you rather than against you.
The excessive toe may have been what wore your bushings out too.
Please post the MY of you car so someone can look this all up in VADIS for you.
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1998 V70 AWD->FWD Turbo 200k+
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