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Hi John-
I happen to have an old 816 and I just checked and confirmed that the connections are in fact the same (as a 97 850). When I plugged mine in it read ÖFF - but that may not be a clear indicator of compatability since this one had some issues (my daughter used the CD slot as a piggy bank).
The 816 was in my 2000 V40, so it might not be listed in the 1996 owners manual because it wasn't in use yet.
For what it is worth, I found that the Volvo radios on E-Bay were selling for a premium and I waited awhile before replacing it. However, when I was at my local automotive recycler he had one on the shelf for $50 - so it may be worth checking around.
Mike
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