It appears that the Viscous Coupling AWD system on the older Volvos (through 2002 or so) is pretty fragile. You might be able to light the tires up once, but if you want to keep the car on the road (and out of the shop), you might want to leave this project to the realm of the imagination. I hear that the Haldex setup in more recent model years is more robust, but am not sure I'd be brave enough to try to light them up even in one of the newer cars.

I've seen all four squeak a bit in an AWD Subaru before (didn't think it was possible to get them all to lose grip on dry pavement, but in the course of teaching my girlfriend to drive a stick shift, it happened), but not a real "light up" of the tires -- maybe you could do it in a WRX-STI or something.