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The flashing AC and Rec lights indicate some sort of problem with the AC system. I have seen it happen twice and each time the AC died shortly after. The first time it was a blower motor. It worked for a short time after the flashing started, but within a week it would only work on the lowest setting. The second time it was the evaporator. I seem to recall that the manual for the s70 says something about it, and it suggests that the car be brought in to the mechanic to have the AC system checked. Sorry I can't give you any better information.
Hans
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