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$700!!!! insane
I have an MR2 as a toy and that thing needed the converter replaced. Ordered it online for $170 and did the work myself in one day. Passed emmisions with flying colors.
But the cat doesn't do much but clean up the exhaust gasses, so if the car is eating to much gas in the 1st place then ht can't really be the cat. The cat has nothing to do with the fuel delivery. Check the air filter, see if the plugs/wires are OK. The O2 sensor could also be bad. I have yet to collect literature on the Volvo so I can't help you with the code, but the things I have listed are the things I would look at 1st.
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