If the heater core is hooked up and the hoses get hot, and, you do not get blinking lights at start up, you might want to consider a new dash unit:
http://www.ebay.com/itm/Volvo-S70-V70-V70XC-C70-OEM-dual-ECC-climate-dash-temp-control-ac-heat-98-99-00-/132338615297?fits=Year%3A1998%7CMake%3AVolvo%7CModel%3AV70&hash=item1ecfff0401:g:OfUAAOSweXhXmMsg&vxp=mtr
Or look in your local P&P.
Currently, set the blower speed to auto and the vent control to auto. Once the engine starts to warm up, the blower is supposed to slowly start working until the engine is hot.
Does the blower even work?
This is going to get critical in the next month!
Turbo ----
You have a low pressure turbo which is supposed to engage at about 1500 rpm and give you 200bhp. Not a rocket sled, but not a total dud either. You may have a bad vacuum line at the turbo, there are 3 of them.
At 225K miles, most of your vacuum lines will be rotten.
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Keeping it running is better than buying new
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