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Guys:
I had the same clunking sound on my 99 S80. I checked everything under the hood, the suspension, the spring seats, etc. I even took it to the dealer as it's still under warranty with only 35K miles on the ODO. We drove the car around and there was no noise or clunk, yet it was clunking on the way to the dealer. Anyway, when nothing clunked while the Service Manager drove the car and I was in the passenger seat, I looked foolish and he thought I was nuts. I insisted that the suspension clunked and the dealer torqued all the suspension nuts and bolts to spec, inspected the spring seats by compressing the springs and they were good and eventually changed the end links on both ends of the front roll bar just as a precaution, but the clunk persisted which you could feel on the floorboard when you heard it clunk....especially when making right turns with the car.
Anyway the car needed new brakes and I ordered a set of EBC Greenstuff brakes for the front end, which by the way are phenomenal. While I had the car up and the wheel off installing the new brake pads, I lubricated all of the friction points of the suspension using just a regular shot of WD40 followed by a regular oil squirt can filled with Mobil 1 0W30. Lubrication included the A arm bushings, the roll bar and its bushings, engine mounts, subframe attachment points, spring seats, the strut's chromed shafts, the steering knuckles, ball joints...you name it, it got a squirt of oil.
Well, I'm happy to report that the result of all my oiling is that the clunking is gone. How it happened and what was the cause of the clunking will always be a mystery now as everything got shot with oil on the suspension. If you do have or in the future get that mysterious clunking on the front end of your S80, do what I did and you'll be happy you did.
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