I took my wife's '07 S60 2.5T in for routine service at 67.5K, and was told that the PCV Hose was broken.
The dealer quoted $1700 parts and labor. Ouch.

I found the genuine Volvo PCV Hose (8692217) online at Voluparts Online Store ($26.80). You need 2 1" hose clamps to replace the (ugh!) crimp connectors.

I didn't know if I'd be able to do this repair. A good sign you can do it yourself is if you already have a set of Torx socket wrench tips, 10" hemostats (or long jaw pliers), and a patient can-do attitude.

If you look down at the bottom end of the PCV Hose (you'll need a flashlight, it's down about 6" below the intake manifold, viewable in space between intake pipes), can you see the crimp bulge on the hose clamp?
If you can touch this "omega"-shaped bulge with a long, skinny screwdriver, you have a chance to pull off this repair without removing the intake manifold.

Here's the approach I took:
1. Remove the fuel injection cover and spark plug cover (black plastic panels).
2. Unplug the fuel injection harness closest to upper end of the PCV Hose, and tape it out of the way.
3. Use removal of the hose's upper crimp clamp as a rehearsal for how you are going to have to remove the clamp down below. You're a surgeon. Observe how you will be able to address the lower clamp, given that you're going to have to work through a small portal from above, and also with a long screwdriver from the right end of the intake manifold.
4. You blast open the crimp clamp by inserting a screwdriver tip where the barbs are, between the inner and outer bands. Tap the screwdriver with a hammer to liberate the outer band from the barb.
5. Once the clamp is busted open, use a prying screwdriver from the side, in combination with hemostats pulling upward on the hose remnant to reveal the brass hose bib.
6. Repeat this process to remove the south end of the old hose. Be careful not to puncture the PCV box with the screwdriver. You'll need a utility light lowered down at the right end of the intake manifold to do this surgery. Clean the old barb.

Install south end of hose.
1. Mount the hose clamp tight enough so as to not fall off when pushed with a screwdriver tip, but no tighter.
2. Orient the hose clamp so that you'll be able to tighten it from the right side.
Lube the inside of hose with vaginal lubricant.
3. Stuff the tube onto the lower barb. Before tightening clamp, make sure the north end of the tube is coming up through the proper opening (close to the oil filler cap), and reaches the upper barb.
4. Connect the north end of the hose. Don't forget to plug the fuel injector back in!!

A note of caution...this worked for me. It took about an hour. I think I was lucky in regards to being able to blast apart the lower crimp clamp, and using the upper clamp as practice for dealing with the lower clamp -- that strategy made a difference.

I Finally got the hollow screw from the local Volvo dealership yesterday and finished up the job. In the end, this job is a PITA: sore back, sore knees, sore fingertips, coolant all over the floor.

My hands aren't particularly big but I still had to remove a few more items from the engine compartment to make room to work:

- upper radiator hose (radiator to thermostat housing)
- dipstick
- rubber intercooler pipe (connects over-engine tube to intercooler)
- wiring harness mounting plate (bolted to head on driver side)

The trickiest part is re-connecting the new breather tube assembly. One end attaches to engine head on driver side and the other attaches to the underside of intake manifold. The space one both ends is incredibly tight, so there is little room for tools (hence the sore fingertips). Be prepared to catch the coolant that will flow once you unplug the hole on the head (driver side) to attach new breather tube, I suggest going a bit slower and getting it in on one go vs. rushing and dropping the screw (and washers) all while watching the coolant flow. Attach breather tube on the intake side before connecting it to the oil separator and thermostat housing nipple, this will give you more play on the tube to work with. Attach breather tube to intake manifold before connecting intake anything else.

After this it's just putting everything back together. I went in this order yesterday:

- connect breather tube to head
- connect breather tube to intake manifold
- connect air intake pipe to throttle body
- mount intake manifold (with new gasket), don't tighten bolts yet
- connect fuel pipe to fuel rail
- connect breather tube to oil separator
- tighten intake manifold bolts
- connect breather tube to thermostat housing
- connect valve cover to oil separator hose
- connect vacuum lines to intake manifold
- connect wiring: injectors, fuel rail pressure sensor, thermostat, throttle body
- connect upper radiator hose
- re-attach wiring harness plate
- connect wiring: ignition coils
- re-install air box/MAF meter
- re-mount wiring harness with zip ties
- mount ignition coil cover, fuel rail cover
- re-install dipstick
- re-install intercooler hose to over engine tube to turbo
- re-install strut brace
- ADD COOLANT

That's all folks!

1) Completely disconnected and removed intake manifold/throttle body assembly from car. This required disconnecting all vacuum lines, electronic connections (FI, pressure sensor, TB, etc.), intercooler to TB pipe, fuel pipe (to fuel rail), and passenger side breather tube (from underside of intake). Fuel pipe took a bit of time since the fitting is tight [squeeze green buttons, push in then pull out]. Since the assembly was out, I cleaned the manifold and TB with TB cleaner. Found a small pool of oil in intercooler-TB pipe so I removed that and also cleaned it with TB cleaner (I suspect this might be coming from my leaking turbo; maybe caused by plugged PCV?).

Intake manifold gasket removal required cutting old gasket on last bolt (pass. side) since the bolt can't come out all the way; it hits the thermostat housing. Looks like I'll need to cut the new gasket to go around the bolt because I don't want to remove the thermostat unit just to remove the bolt.

2) Removed old oil separator, breather tube, valve cover hose. Oil separator lower retaining bolt is difficult to access, need 6" extension on 10mm socket; tight squeeze as this will rest right up against alternator - need to work around dipstick tube and turbo to intercooler hose.

Disconnecting breather tube from engine head (at thermostat housing) will open up breather cooling line (both ends) so be prepared to catch/stop fluid. I bought rubber caps to CAP off nipple on thermostat housing and PLUG hole on driver side (engine head) to stop coolant loss after removal. Disconnecting breather tube on driver side required disconnecting wiring harness (from coils) and moving it to access the hollow screw connecting the breather coolant line to engine head. Even so the space is very, very tight. Be sure to keep the two little washers from the hollow screws on both ends of breather tube.

3) Install new oil separator, breather tube, valve cover hose, intake gasket...

I had to stop because somewhere along the way I lost the hollow screw for the driver side breather tube coolant line. Had to special order the part from local Volvo dealer today (part number 8653883); takes 2 days and costs $14.80, ouch. From here it seems pretty straightforward and should go much more quickly.

I'll add pictures once I have them organized.