My ABS has just failed as well, 3weeks out of its used car warranty. My dealer approached Volvo Australia but they say too bad the car is 6 years old and it's not a sfety issue since the brakes still work. When I rang the spare parts section in town the guy there tells me these are known to fail and Volvo has recognised this and reduced the price from $A1400 to $A987.....how generous,
I read somewhere that Chrysler in the US did a recall on an electronic anti rear wheel lock up device on vehicles up to 10yrs old.
One thing though, the service I get from my local Volvo repairer is outstanding, he has loaned me a new module for a few weeks until I decide wether
repair or replace the faulty one, no labour charge.
The warranty has been good.... new flasher module, Premium CD/radio,engine mount,driveshaft thingy(sort of harmonics reducer I think) and 10 hours labour to find an intermittent short cct.

regards....Valvo