Ok, thanks everyone; you have all been most helpful. last night i pulled the v70 in the garage and removed the airbox and associated bits. removed the distributor cap, shield and when i unbolted the rotor, the camshaft oil seal fell out of the recess and landed on the transmission. (gee, i wonder why it was leaking :-))
replaced the seal and then cleaned up the rotor and cap [both showing some age on the contacts]. removed the cam position sensor. exh cam oil seal not leaking so i left it alone. cleaned the inside of the cps with electronic cleaner and the multi plug as it was green from oxidation. reassembled all of that. removed the spark plugs and cleaned the all. fairly covered with combustion crud; probably been there for about 70k miles [original volvo oem]. added a qt of oil and took her out for a test drive. Absolutely different running engine with no stutters, idling problems or cutting off. not sure which item cured it or if it was a combination of all but happy now. as much oil as their was around the dist cap, i wonder if it was making a hot oil mist and causing problems inside the cap when the car got hot.

Thanks again