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Hello G.,
The usual suspect for camshaft timing problems is the solenoid that actuates the variable timing pulley. This can be found by removing the plastic covers atop the engine. Just behind the exhaust cam pulley, you should see the solenoid (held in with four screws, has one connector, solenoid is around 4 inches long or so). Due to the small passages in the solenoid, any contaminants in your oil can clog the ports (such as, if the oil hasn't been changed regularly). You can sometimes clean them, which involves removal and disasembly of the solenoid (fairly easy, depending on comfort and skill level; let me know if you would like further instructions). The definite fix would be simply to replace the solenoid and gasket, but I wanted you to know that it is possible to clean the unit if you'd like. The solenoid itself is just shy of $100 (P/N 1275579), with the gasket being $3 or so (P/N 30731212). Anyway, thats likely what you need to do. If you do decide to replace it, change the oil at the same time. I hope this helps, and let me know if you need any more info.
Joe S. - Volvo Master Technician
2000 S70 AWD, 1981 242 Turbo w/intercooler
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