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I'm on my 4th Volvo, and my current ride a 01 V70 T5, has the aluminum crush washer, and I've not experience the problem you are having. Perhaps there is a surface irregularity on either the drain plug, or the pan. Check for scratches, nicks or other blemishes that may cause a leak unless the soft aluminum washer is so deformed it fills the nick. If it is the drain plug, I'd just buy a new one (you might just try this next time anyways), and if the pan, you need to try to remove it, or live with it. Warning, if you do try to remove it, you may make it worse! Perhaps a small bit of non-hardening sealant on the flange would be easier. Use caution not to allow any in the drain hole!
Jerry
01 V70 T5
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