As for your first question, Yes, this is a very easy repair. At least it was on my 1995 850. You can see the procedure illustrated at www.volvospeed.com. The exact link is:
http://www.volvospeed.com/vs_forum/index.php?showtopic=9717&hl=Jeater
I just replaced mine around Thanksgiving and I did not have to remove the glove compartment as shown in this procedure.
I purchased my heater core from FCP Groton for $128. I could not find one locally and all of the other online parts sites listed it for $280. It has been working great (9 degrees when I went to work this morning).
Good Luck
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