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It's also pretty well documented that Volvo had an issue with their fuel pumps. The plastic tops crack under certain conditions and this leads to the smell. The Fuel pump is under the rear seat on the driver's side.
I had to replace mine and Volvo refused to pay as they stated that the problem only happens in hot climates like in Nevada and Arizona. (they had a limited replacement policy at the time only for those two states) A few years later I got got a form letter from Volvo saying they would pay for fuel pumps that had this condition. I sent them my receipt and they sent me a check.
Here is the original info: NHTSA# 07V15200. Volvo campaign # 176.
http://www.allworldauto.com/recalls/NHTSA_07V152000_2002_VOLVO_S60_recall_75197.html
http://auto-recalls.justia.com/volvo/s60/2002/07v152000/
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