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I used to have the same problem in my '96 N/A (vacuum leak sounding noise & high RPM) and an indy shop did a temporary repair by inserting a screw at the end of the vacuum hose that coming out of the intake manifold (passenger side). I did replaced later on the whole vaccum hose and found that the other end of that vaccum line is going to the flame trap.
Check the 1st pic at the top of this link and tell me if it's the location
you found that little hose with a screw at the end
http://volvospeed.com/Repair/vacuum_lines.htm
Do you have a turbo ?
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