You are correct Peter, it has to do with the PAIR system. The first thing to consider is replacement of the PAIR valve, which is located above the exhaust manifold, to the left of the upper engine mount. It looks like the top of a vent stack chimney. www.fcpgroton.com sells the valve for about $86, and replacement is straightforward. After that you will need to get the code cleared. I recommend getting an ODBII code reader like an Auterra 3100, so you can diagnose and clear your codes.
check out www.volvospeed.com for instructions on how to replace the PAIR valve (A.K.A. SAS valve)
BB
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1998 V 70 BASE
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