I'll tell you what I did, but I want to preface it by saying that the oem foglights are a *very good design,* but poorly implemented by Volvo. It's plain to see that Hella designed this system to a set of specifications which Volvo changedalong the way. They neglected to inform Hella of new specifications. Thus it's Volvo's mistake, so instead of paying out of pocket for new engineering and manufacturing, they just shipped the inventory they had.

Here's what I did.
First, I trimmed the stub on the airdam flush (where the lower screw on the mounting bracket is located). I drilled a pilot hole for the screw when it's replaced during final re-assembly.

Second, I bent the lower tang (already a 90-degree bend) of the metal mounting bracket back about 3/4". This required force as the steel is strong; to make it easier, I cut a kerf on the inside part of the bend.

(These first two mods allow the light to be lifted up into the airdam opening, and raise the aim.)

Third, I shimmed the mounting screws about 3/16". To do this, I backed out the screws through the plastic housing, peeled away the goop, spread the parts, and inserted ordinary hex nuts (these are the shims) between the plastic housing and the base. I simply reinserted the screws through the center of the nuts and back into their original holes.

(This mod helps flare the lights to the sides for better around-the-corner lighting at night.)

Finally, I used the adjusting screw to raise the aim point of the foglights for optimum fog pattern distribution.

Sounds like a lot, but it only took me an hour to do the work, and only required a hacksaw, large channel locks, socket wrench with #25 torx, and my cordless drill-driver. Since I never completely removed the plastic housing from the mounting bracket, I worked carefully at bending the metal as I didn't want to crack or break the plastic shell.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)