I spent some time under my car today tracing an oil leak that is near the rear of the engine, visible from underneath only. Since this car is AWD, the turbo oil return line is different from that which is portrayed on Volvospeed, Bay 13. I can't even be sure which line it is. There are oiley areas visible where the air intake duct clamps on to the turbo, the bottom of the turbo itself, a silver metal line that connects to a rubber hose that runs upward and connects to coolant lines, and especially the 'power transfer case?' that is SO MUCH in the way.

As I continued to creep back under the car, I noted that the seal for the driveshaft that goes to the rear is leaking too. Perhaps this is the source of all of my leaks.

Is the turbo both water cooled and oil cooled on these cars? Has anyone seen a seal cause all of this oil dampness, or so you think I have two leaks?

The AWD front differential makes it very hard to figure out if the turbo return line is leaking. If your rear seal is leaking coming out of the front differential I'd get to a dealer soon. Have you replaced tires receintly? Have you kept up the rotation of the tires. AWD Volvos don't like to have tires in the front that are smaller than the tires in the rear. Every 20K the oil in the front differential is suppose to be checked and topped off with the correct volvo oil, has that been done? When the front differential goes from incorrect tires oil from the front differential goes every where.

Tires were replaced at 20K, all four. They are rotated every 5K miles. I just did them again today.

I have no idea if the dealer has checked the front diff oil level at all. Is it checked by taking out the hex head plug on the passenger side of the diff near where the axle comes out? (It's oiley up there too).

If all this oil is from the front differential, thank the Lord it is under warranty...

If your tires are good then (fingers crossed) I'd suspect the turbo return line where it goes into the block. Warranty should take care of the problem regardless. Little known fact about the front differential and many people forget to check and adjust the level there. You might want to ask if it is part of their regular service, if not ask them to check it and adjust it with the correct oil. (volvo part number 1161513)

If the car's under warranty, just take it in to your dealer and let them handle it.

There's often some seapage seen from the air tube where it connects to the front of the turbo and if the clamp is tightened, it'll seap less. If it's the drain tube o-ring leaking at the block, the angle gear assembly must be removed to replace that on the AWD.

The seals for those angle gears can also leak so to be sure, degrease everything suspected first, drive the car and re-check to be sure.