I have a 126000 miles on my S70 and i just replaced the front struts and rear shocks and shock mounts. I was also having the exact same symptoms as yours. The clunking noise all but went away. I occasionally hear the steering stops now and then.....

Unless you drive on really rough roads needing a "new front end" is pretty costly alternative. I would suggest a second opinion is in order with someone who knows Volvos really well. At 100,000 miles your mechanics suggestion on "these cars" needing new front ends is a pretty loose statement. My question is what car at 100,000 miles would not need a new front end? Most cars with that many miles on the road will need something replaced.

Maybe going to a Volvo dealer or another reputable import mechanic would help firm up the conclusion. My Volvo has run really well past the small little issues.

Also, if your ABS/TRACS module starts to fail (and it will) you should go to the following web site and have this guy repair it for you vesus replacing the entire unit for over $500!!!!

http://home.earthlink.net/~vicrocha/Volvo_Parts/Volvo_V70_ABS.htm

I just sent him my ABS/TRACS module from my S70. He will repair it for $130!!!

BTW: I would love to hear about your Diesel. I have only seen one 740 a long time ago that was a diesel but have not heard much past that. Are they very rare??? What was wrong with the motors????