I'm not sure if you have the same issue I did but here is what I found with my newest Volvo, a 97 850. I bought the new O2 sensor and took it with my list of things to be done by the guy who works on my Volvo's. The list of things he found was enough to make me sick (suffice it to say I did not buy well this time) but I knew I had the normal PVC issues to take care of when I bought it. He did the work and before using the O2 sensor (which he thought it wouldn't need) the CEL was cleared by the PVC replacement. Maybe it was a bad hose as some mention but check for the PVC system issues (smoking dip stick, bad ticking sounds at start up,etc) and that may be one way to fix the CEL issue. But it will be a much more labor intensive issue than some of the others. Anyway, that if my personal experience with the CEL code hopefully yours is not as big an issue.
Good luck
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1996 855 TL Platinum Ed., 1995 854 GLT 5 sp, 1995 854 (RIP), 2005 V70R (badly missed)
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