Do a simple test. You just need a garden hose. When I hear "engine starts when engine is cold (such as first thing in the morning) AND engine won't start when engine is hot (such as when car is sitting out in sun or just recently running up to temperature even after short errands)", I think about the starter/solenoid. So, when you start the car when it is cold, drive it around town for twenty minutes and park it in your driveway. Fetch the garden hose and after several minutes start the car. If it doesn't start, take the garden hose and direct the spray onto just the starter/solenoid to cool it off down to ambient air. Now, attempt to start the car. If the engine starts, you have a starter/solenoid problem.
This was a problem on my '90 760 and my diagnosis. Just a simple test - just add water.
For the fun of Volvos,
Mike
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'92 245DL, '90 760 GLT
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