I also have a '98 V70...ALL of these things went bad at about the same time.

My rear brake cables were seized, causing the shoes to disintegrate inside the rotor. Bought from Volvo, $83 each, replacing myself but a BIG job (give yourself a day, involves removing interior trim, rear seats, pulling back carpet, removing console, disassembling brakes.)

The axle support bearing is available separately but nobody has the part # for it. Volvo sells the bearing and retainer for about $150...an aftermarket axle with the bearing installed is cheaper (www.partsamerica.com) I will soon have a part number interchange for this bearing once my new axle arrives! To the member that suggested only replacing the bearing, it is pressed on and the axle must be removed anyway to change it...labor will certainly cost more that way.

My air pump is squealing...this seems like the easiest fix of all of them but the most expensive part. I'd say this is easily DIY, though.

Good luck!

Look here for the air pump - http://www.volvospeed.com/maintence.htm
BOTH parking brake cables are broken???? Most unusual. Normally, they just get tightened once or twice in 200K miles. You may have bad brake shoes which cause the parking brake to no longer work. To inspect that, use a small flash light and shine it in the inspection hole in the rotor.
Never had to do a front axle in a fwd car, but FCPGroton is much cheaper than a dealer.

Klaus
--
(1975 164, 1995 854T, 1998 V70R)

All are DIY if you have the patients and the know-how. Much cheaper as you can order your parts from places other than Volvo...such as from www.fcpgroton.com and others. The air pump is a pesky issue and raises it's ugly head from time to time in our cars. I've heard of people drilling a hole in the bottom of them before they actually get bad and keep on going. Also, the valve change itself can be the solution. Is it actually shot now? Brake lines...seems a bit much, but I haven't seen your car, so what do I know. For the price you were quoted for the brake lines, you could go all stainless. As far as I know the bearing is not cheap, but certainly not $500 and also not a complete axle change (sort of what your explanation sounded like), though a PITA...probably something you want a day to do, especially if you're like me and use your car as your daily drive. Good luck and let us know what comes of all of this.
--
1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon. My cars have been running so well lately they've got me worried.