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Well, the timing belt is good for 70K miles, which means that you are over due or it was changed at 60K/120K and you should be good for a while. If this is your cars second timing belt, it is highly suggested to replace the tensioner for the belt also. Have the water pump checked to make sure the bearings are not starting to get loose.
As for struts/shocks, if the mounts are broken and making noise and these are original struts, I would replace them at the same time. Take a look at www.shox.com for a competitive price. Bilstein touring seem to be pretty good.
Klaus
PS. The dealer always over charges. Find a good independent Volvo shop, where other 850s go, and have them "inspect" your car. That is the best way to shop for a mechanic. It will cost a little bit for an inspection, but you will learn a lot about the shop that way.
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1975 164 w/174,800mi (Sold) 1995 850T w/91,000mi, 1998 V70R w/129,000mi
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