I just finished installing new pads and flushing the brake fluid.
I used Textar pads in the rear, but kind of wish I had gone with Volvo original. The original pads have a backing that looks like Mylar bonded to the pad that clearly is there to absorb sound. The Textar did not have this backing. I used Permatex Disc Brake Quiet on the back of the pads, and applied brake grease to the guide pins. For what it's worth, there was no squealing on the bed-in run of about 5 miles.

Although the front pads were worn to within 500 miles of disaster (44,500 miles of use) the rear pads still had 40 -45% of their lining, and did not really need to be replaced. Since I had the new pads and had the brakes apart, I went ahead and put them in anyway.