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Maybe a broken REPL (Red Evil Plastic Lever).
The symptom of a broken REPL is: Locks but it won't unlock with the remote control or with the door mounted switch. You can unlock it by pulling the lock button with your hand.
Is this your case?
When the one on my wife's 98 V70 broke, I documented the procedure to repair the lock assy. Nobody has done the repair tough. It is extremely difficult.
I believe I have some of those locks on hand.
Here's the link to the repair procedure.
http://volvospeed.com/Repair/v70latch1.php
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