Scott,
I hate to turn anyone away from a Volvo dealer, but leave 355 and don't look back. I will gladly buy parts from them, but that is it. I hear horror stories about these monkeys every time I see a Volvo owner around town! I do most of my own service, but I have heard from very reliable sources that Annapolis Volvo is a great dealer for service. There are also some good inde shops in Rockville and Gaithersburg.
Oddly, I had the same exact problem with my Honda accord a few years ago. The sound came from beneath the timing cover so I opted to diagnose the problem myself. I removed the serp. belt and ran the car...noise was still there. Pulled timing cover and saw Honda’s abortion and figured that they should replace all 3 timing belts. (Also their recommendation after diagnosing the same problem.) $1000 later, new t-belts, pulleys, tensioner, water pump, crank bolt (mechanic stripped the head), and other assortment of goodies...result= noise still there! Aaarrrrgggghhh! Pissed, as one should be after spending a grand to fix a problem and still having it there, I took the car home. Drove it for a week and then Bosch came out with those new platinum +4 plugs. I figured that the car was due for some TLC anyhow. I replaced the plugs and the noise was gone!? Found a pinhole leak in the porcelain of #2 sparkplug. Case and point...maybe you should replace the plugs first. This had me stumped, as well as several DOZEN other mechanics. We all thought that it was a belt related problem, the sound made perfect sense. (3 Honda dealers, 2 Honda hop-up shops, and my old NASCAR buddies shop.)
Good luck!
Prospero
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