Hey Paul,
Sorry to hear about the cost for that sending unit. I looked around, and the only fix I see done to sending units is a resistor to fix a non-working fuel gauge and replacing the pump. I'm not sure if the wire can be replaced. It would have to be fuel proof. I have not ordered from the volvosite, so I have no opinion about them. However, I have found a good place to get OEM Volvo parts is Tasca Volvo, (www.tascavolvoparts.com).
They charge employee prices to everyone and ship to your door. I have found them to be quite a bit cheaper on many OEM parts than FCP. Don't take this as bashing of FCP Groton. They are a great place. Give them a call or email them, since they don't have everything on their site. Calling them seems to work best.
Regards, Jon
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