No specific information on replacing the sensor, per se, but I can tell you that I've had coolant level warnings on my car before. They usually preceed my discovery of a leaking heater core -- a VERY common problem on the 850/70-series. Try this thread from Swedespeed for more info:
http://forums.swedespeed.com/zerothread?id=25204
I went with the UK-spec Haynes manual for replacement info. For that matter, if your coolant level sensor really IS giving you problems, that reference will probably have instructions, too. IPD sells it.
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Jim Rothe, '99 S70 T5M, http://www.jimrothe.com/volvo/index.html
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