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This happened to me recently on my 98 S70 189K. I discovered that the connector was broken and wasn't seating correctly on the bulb blades. Was able to make the connection between the bulb blades and the female receptor despite the connector's plastic breaking completely apart when I handled it. I've since picked up a new connector harness at the local pick and pull but haven't gotten around to swapping it out.
Obviusly there is a break in the low beam circuit somewhere.......
You might also try swapping the "good" bulb on the other side just to rule out the possibility that the new bulb was defective.
Another possibility might be a relay problem. Though I don't recall hearing that our Volvos have the problem, I have a Saab that suffers from a bad solder joint in the headlight relay.
Hope this helps. Good luck.
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