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Yes, all that you have to do is remove the driveshaft (front to rear diff) and it'll be FWD w/o ANY problems (even less torque steer that normal FWDs btw). We've done this with 2 customers cars so far, more to come in time I'm sure.
Now, if there's a problem with the driveshaft itself (or the center bearing and no one local can repair it), Volvo has lowered the price to about 1/2 of what it use to cost (now about $800). If you have an angle gear problem however and don't want to replace that costly part (also cheaper now but still costly), then I'd also remove the driveshaft if you can live w/o AWD.
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