That's correct, it is a liquid gasket. To do the job, you need to support the car by the frame behind the subframe that holds the engine and front suspension. You will need an engine hoist or equivalent to hold up the engine. You will need to at least loosen the power steering lines that run under the oil pan so that you can move them to the side. Remove the dipstick tube (bolted to the underside of the intake manifold). Then unbolt the engine from the subframe (remove the right front wheel to get to the front engine mount), and unbolt the subframe and lower it (mostly needs to be lowered at the front of the engine to allow the pan to clear the subframe). Now you will be able to remove the oil pan bolts and remove it. Clean the old gasket material with a gasket remover. I then cleaned the gasket remover with some carb cleaner. Clean both mating surfaces, and apply the Volvo liquid gasket to the oil pan with a small paint roller. Replace the various o-rings (two between the oil pan and intermediate section, the dipstick tube, and you might as will replace the oil tube pickup o-ring while you're in there too) and bolt the pan back in place.

You really want to have a good reason to do this, or else you just love working on your car.

Phantom