First of all, if you don't have patience and enjoy challenges - don't bother doing this job yourself. I needed two therapy sessions prior to completion.

Also, there is a pretty decent video of this procedure on YouTube for an XC90 by bunnybr which is applicable to this car as well.

Tools Needed:

1. 7mm 3/8" drive allen
2. Large (anti-rattle spring R & R) and small flat screwdrivers (to adjust location of slider pins and reinstall compound brake lever)
3. Brass wire brush
4. Flat rat tail metal file
5. Good pair of needle nose pliers
6. 10mm, 13mm sockets and/or combination wrenches (I used both kinds)
7. High temperature grease
8. Disc brake/silicone lubricant
9. 3/8" ratchet and extensions
10. Flashlight to align spiral springs during installation
11. Hand soap - 2 oz for the experienced, 16oz for the inexperienced

Procedure-
Disassembly:
1. Put car on a flat surface, block the front tire on one side.
2. Loosen lug nuts of both rear wheels slightly if you don't have an air wrench
3. Jack side opposite blocked wheel
4. Use a jack stand or blocks under the lift point just forward of the rear wheel well.
5. Disengage the parking brake and remove wheel
6. Pry off anti-rattle spring
7. Remove 2 dust caps from slider pin bolt rubber bushing
8. Loosen both slider pins with 7mm allen and extensions as needed - use a small screwdriver to pry the threaded end flush with the caliper housing, so no binding occurs when removing caliper.
9. Pry off the plastic clips that hold the ABS wire to the brake line
10. Remove the caliper, and position it with the pads facing up, resting on the rear suspension member so the brake line is not stressed.
11. Loosen the caliper mounting bracket bolts with a 13mm combination wrench. I used a wood block to whack it to loosen. Remove bracket.
12. Remove the 10mm bolt that holds the rotor on
13. Remove the rotor. My rotors needed replacement, and were well corroded onto the hub. I used a hammer right on the edge of the rotor, and it was still quite stubborn. Obviously you need to be more careful, if you are reusing the rotors.
There are two parking brake shoes, each held on with a spiral spring, a high tension spring on the cable end, and a smaller spring on the opposite end.
14. The spiral springs are removed by grasping the very end of the center with needle nose, pushing inward, and then sliding towards the REAR of the car. Remove the TOP spiral spring.
15. Remove the smaller tension spring with needle nose
16. Spread the forward ends of the shoes, and remove the alignment plate that sits between them
17. Next, flex the top shoe out and rotate downwards, so that the high tension spring can be removed with a screwdriver and/or pliers.
18. Remove the spiral spring that holds the bottom shoe, and the shoe
19. Examine the compound lever for corrosion/binding. My advice would be do not remove the lever if it appears in good condition, since re-installation is tricky. If you want to remove it, flex the inner lever out and downward, until it disengages from the fitting at the end of the cable.

Cleaning:
1. Wire brush the 3 or 4 contact points where the shoes rest against the shroud
2. Wire brush the alignment plate and compound lever, if removed.
3. (optional) If you want to clean the slider pins, remove them, spray with brake cleaner, wipe down and use the wire brush to remove buildup.
4. (optional) If you want to re-do the brake pads, wire brush the caliper holder at all contact points, and use the rat tail file to remove high spots/corrosion.
5. (optional) Wire brush the hub where it contacts the bevel on the rotor, and the inside of the wheel where it fits onto the hub, to remove corrosion.

Reinstallation:

1. Lube the contact points of the caliper mounting bracket, the caliper slider pins and the contact points where the parking brake shoes contact the shroud with disc brake lubricant.
2. Lube the hub where it protects through the rotor and wheel, and the mating surfaces of the rotor and wheel, with high temperature grease (DO NOT USE WHEEL BEARING GREASE)
3. Install the compound lever into the cable end, if removed. To do this, use a small flat screwdriver perpendicular to the wheel hub (straight in) to pry the cable end slightly open, while simultaneously pulling out and down on the lever. A different technique is used in the video mentioned above. Don;t force it - it is a matter of technique, not force. The cable end has just enough inward force on the sides that you can't pop the ear of the lever into place without some prying.
4. (Lay down on floor, with needle nose, spiral spring, and flashlight available) Place the bottom parking brake shoe against the shroud, and align the slot in the shoe with the slot in the shroud bracket. Hold in place for next step.
5. Using the needle nose to grasp the very end of the center, align the spiral spring with the slot in the shoe, and with the hooked end towards the front of the car. Push in completely, and slide towards the FRONT of the car.
6. Engage the rear end of the bottom shoe with the compound lever.
7. Install high tension spring at rear of bottom shoe
8. Holding top shoe at almost a right angle to car, engage the top end of the high tension spring.
9. Grasp shoe firmly, and rotate upwards and inwards while pulling up and using top of compound lever as a pry point
10. Pry front end of shoes apart enough to insert notched alignment plate
11. Align top shoe mounting slot with slot in shroud. Insert spiral spring and slide towards front of car.
12. Jack other side of the car, and stabilize at needed.
13. Repeat steps 6 through 19 of disassembly, and the cleaning and reinstallation procedures.

Adjustment and completion of reinstallation:
Prior to installing rotors, back off the tension on the parking brake cable. This is adjusted at the parking brake lever.
1. Pry straight upwards the panel that surrounds the lever, which is mostly flexible material, with a hard plastic frame.
2. There is a reddish cover that conceals the adjustment nut. Rotate it upwards, and loosen the nut as necessary so that the rotors may be reinstalled. I used a 10mm open end - you could use a deep socket.
3. Install the bolt that retains the rotor, and tighten.
4. Install the caliper bracket - Volvo recommends new bolts.
5. Reinstall the caliper, (optional) after compressing the piston and replacing the pads.
6. Install the slider pins and tighten
7. Press the slider pin dust covers into place
8. Clip ABS clips to brake line
9. Reinstall anti-rattle clips
10. Mount tires and snug lug bolts evenly. Tires should rotate without binding.
11. Tighten parking brake adjustment nut at lever a few clicks at a time until wheel binds. Back off 4 to 5 clicks (I believe this is the Volvo recommendation - please verify).
12. Remove car from jack stands/blocks, and tighten lug bolts.

Clean hands. Have two or more drinks. Go for therapy appointment.