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John,
I believe you do have a pad problem. We experienced the same thing after driving 20,000 miles on OEM pads. The entire car shakes and feels like 30 large chimps just attacked it with baseball bats. Because of info on this site, I pulled the pads and replaced them with NEW OEM pads and the cutout/half shims. I also used silicon grease just to make sure I tried all trivial things. (I wanted to fix it, not narrow down the EXACT problem.)
The problem is now solved.
Several things changed that could have helped:
* The new Volvo pads have a rubber backing. The old ones did not.
* The new shims are "half" shims and only cover part of the pad. The old shims covered the entire pad.
* The new grease is white. The old pink. (I don't think this matters)
Good luck.
-Rob
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