I have a 2001 xc70 with 107k miles on it. It seems like every six months I'm dropping $600-$800 on it. Recently the 'transmission service required' light and the 'check engine' light came on. I brought it into the dealer and they said everything checked out ok, except there was an issue with my catalytic converter, that wasn't pressing. On the drive home the check engine light came back on. I brought it back and they said it now was a permanent failure code ECM 4801. And the cost to replace the catalytice converter, midpipe, and muffler was $1780. Ouch. My questions: 1) Can they only diagnose the catalytic converter via the computer codes as opposed to actually looking to see if the part is failing. 2) And if I do have to fix it, is there a cheaper alternative than the dealer, say Midas? 3) How long can I safely drive on it? I am not mechanically inclined and the guys at my non-dealer mechanic shop seem to be a little dismayed by the size of the job. Incidentally I'm going to bring it to them to take a look at it, but I'm not sure if they'll only be able to see what the dealer saw via the computer diagnostic. This car is turning out to be a very expensive thing to hold on to. Any suggestions would be helpful.