Thanks for the response.
There are know issues with the T6 (I believe pre-2008) and its transmission (made by GM). Check out http://www.v70xc.com/forums/ under the xc90 forum.
I have not only seen xc90 T5s with significant oil sludge, but also seen oil sludge in some xc70s that I have checked out with less than 80k km. I believe that the Volvo recommended oil change schedule for the xc90 is too infrequent as the XC90 is a heavy vehicle requiring extra work by the engine which generates a lot of heat with the turbo leading to faster oil breakdown. It probably doesn't help that I reside in mountainous British Columbia.
The V8 XC90s appear to be reliable, though they have don't have the best gas mileage and there is rear bearing issue. A replacement rear and middle muffler (not including the cat) was estimated to cost of CDN$2,100.00 including taxes and approx. one hour of labour - unbelievable cost.
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