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Ray,
yes, the upper engine mount connects the engine to the firewall, and is located on the same end of the engine as the distributor.
I also have a 98 V70 (108kmiles)and recently replaced the upper mount, which was obviously cracked, and the one beneath the crank pulley, which was worn but not broken. I got both from FCP Groton. For the upper, I used the neoprene aftermarket type. I agree with others that it transfers a lot of vibration to the steering wheel, but it's mostly only noticeable at idle. Both are DIYs.
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