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It's hard to say if you've damaged the bearings. I would assume that the ladder-like conical housing can be bent if overtorqued, but I would suspect that you're problably ok right now. If the bearing grease has shiny sparkles in it (like very small glitter), this is a shure sign that something is being chewed apart...
A couple years ago I wrote up a comprehensive 240 front wheel bearing replacement procedure that also included the torque tightening sequence. Feel free to read through it, and pass it along to anybody who asks in the future.
http://www.brickboard.com/RWD/index.htm?id=682877
Note, the final torque tightening steps that my Volvo dealership uses (and whom advised me on how to do it) requires that you have the wheel on the car while tightening the castle nut and simultaneously checking the wheel play. You can not do this with a torque wrench alone and expect to hit the "sweet spot" that the trained Volvo technicians achieve. It's all covered in the post above and it should give you the results you're looking for.
God bless,
Fitz Fitzgerald.
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'87 Blue 240 Wagon, 255k miles.
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