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Adam,
Not sure there"s a quick answer to #1, but many of us swear by synthetic oil for our Volvos. Follow the guidelines in your owner's manual regarding viscosity (usually 5W-30 or 10W-40, with synthetic it's probably not a big difference). FWIW, I usually use 5W-30 Mobil 1.
The Trans fluid change is a very simple process if you follow the directions at ipd's website. Their flush kit makes it very simple, or you can duplicate the kit yourself very easily with tubing from a hardware store. See: http://www.ipdusa.com/pdf/PI-290TrannyFlushKit.pdf
Gordon
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86 240 DL 120K; 98 V70 XC 125K(Bilsteins, ipd strut tower brace & sway bars, Wetterauer chip)
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