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That's good that the alternator doesn't have to come out!
I think I want to go with replacing the whole assembly (the brushes look a little more involved than on my '69 Karmann Ghia, where they are held in place by a machine screw). I need to look around a bit more for pricing-- it looks like the Volvo part number is most likely 30667899 (I'm at work and don't have the model number for alternator). If I could find the Bosch number (F-00M-xxx-xxx), it will likely be much cheaper (the best price so far is $91.43 at RMeuropean.com).
I saw the post on Matthew's Volvo site on the cable repair-- lots of flux and a blowtorch to solder the area with high resistance. I did note that iPD sells replacement terminals. I'm tempted to just pay for an aftermarket cable because they are not that expensive.
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