our 2000 V70 SE with the AW5 (Aisin-Warner 5 speed automatic) had similiar problems, mainly loud clunks when automatically downshifting, as in slowing for a stop. The car was an overseas delivery (US model delivered on east coast, purchased in Europe).
At just about 50K miles the trans was impossible to live with. What finally fixed it: Software upgrade. The dealer hooks a computer up to the car and software is downloaded from Volvo USA. Before that, the dealer looked at the motor and trans mounts, test drove it numerous times, was recommedning next to change the ATF. I insisted on the computer download and that's what fixed it.
As I recall there was slight confusion over whether the software upgrade would work, because the VIN (overseas delivery) didn't fit in the range of USA models qualified for the software fix. Like I said, I asked then to do it anyway. Car was outside of warranty, dealer finished the job "no charge" for good will and because they were as frustrated as I was.
Car is now at 70K with no repeat problems.
The AW 5 is a nice trans when performing correctly.
Robert
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