Yeah, fender painting has it's ups and downs. From your description, you are talking about the bumper cover right and not the, um....quarter panel. IF NOT the bumper cover then disregard all that I write below except about the "Parade of Colors" company.

For your model year, wouldn't an "R" bumper fit...and boy, do they look great!! And, I've seen these available all kinds of places...try asking over on www.volvospeed.com forum as well as www.swedespeed.com forums. One company that's a chain that I could recommend is "Colors on Parade." Do a Google search for them. They are resonable and professional and pride themselves on being able to match colors closer than dealer. I recently had them take out all the "keyed" scratches on our V70 (they were all over the car...damn, I hate grocery parking lots) and they did all of that for about $100. I was impressed with theil level of work.

Another option is to paint it yourself but less professional. Prepping is the key...sanding off old color, using very find grit wet sand and priming, then spraying a thin layer first and building up is another key with plenty of drying time between the layers. You can buy the spray paint that goes with your coded color from the dealer for about $25, I beleive (pretty decent match but don't expect it to be perfect...but on a bumper it's not as obvious) as well as a can of clear coat that comes with it. By far, this is the cheapest option. If you screw it up, you can always sand-blast again and start over. If you have the bumper off of the car and you're really careful in a good, controlled area, you could do it and it actually looks quite good...you'll use both spray cans in their totality if you do this and do it right. I did this with my T5 and am very pleased with my own results on the front lower part of the bumper that was scraped from going over bumps and pulling up to curbs by the previous owner.

Good luck!
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon