Hello,
The heater valve is under the metal housing you described.
The metal housing and IIRC the heater valve are both retained by the same 2 screws, 1 on top and 1 on the bottom.
Carefully remove the housing as there should be a capillary tube inside that is attached to the heater valve and you do not want to damage it.
You might have to slide the housing back over the cable and then reinstall the screws to hold the heater valve in place while you are trying to free up the lever.
It would not be a surprise that once you do get the lever to move, that the heater valve might start to leak.
There is a repair kit and if necessary, new heater valves are still available.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502
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