So, it looks like I'll have to replace it. I think buying it back from the insurance company and trying to repair it myself is a bit more work than I'm willing to attempt right now - if it was Summertime or if I had a garage to do the work in I'd be more inclined to consider it.

For a replacement, I think I'll stay away from the 1999 and 2000 models due to the ETM issues - even if Volvo is now covering the cost, I really rather just avoid the whole debacle. I don't see too many T5's on the market right now, but I've found a couple of nice '98 R's - here's one:
http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=4601341933&rd=1&sspagename=STRK%3AMEWA%3AIT&rd=1

Klaus, do you think the additional drive train components in the AWD models (particularly the R) add a lot of complexity and potential for problems? How reliable has your's been? Looking at the undercarriage photos in the Chiltons manual, it looks like it would be very difficult to change the rear differential fluid - have you done this? Also, do the R cars have the bevel gear problems I've read about in the past? I love how the R looks, any they generally appear to be in very good condition due to caring owners, but I should probably wise up and get another front wheel drive model - my T5 has been fine with just a set of Blizzak's for Winters here in the Boston area. Thanks,

-Daire