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I've not heard anything bad about the S/V40s, but then I haven't heard much at all. There's just not that much traffic here about them.
I think they look nice, different style than the V70. I could see someone choosing the 40 over the 70, regardless of fuel economy vs. size between the two.
The 1.9L-four is a direct relative of the 5-cylinder in the 850/S/V70. Basically they lopped a cylinder off the end. It was built on a platform shared with Mitsubishi. There's a Wiki page for it, but it's very much bent towards the european version so there's no telling how applicable the information is to the US market.
Good luck!
-Will
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850 / Mini
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