While I can't specifically report on the use of an external cooler in place of the original cooler, I'd like to ask why not just replace the radiator? I don't think that a radiator is outrageously expensive, and I don't think that it is a difficult repair to make. This is one of those instances where I feel that the stock setup is better then trying to redesign what Volvo (and most every other manufacturer) has already engineered.
I know that this part isn't specifically what you asked about, but I will mention it since it might yield you some information about how the factory used external coolers: (some?) Turbo models had a supplemental 'air to air' cooler. It ran in series with the regular radiator cooler. In cases like that it is important to make sure that the added cooler is 'downstream' of the radiator cooler. If not, you might take heat out and then put it right back in when it goes through the radiator cooler. I still have an external turbo cooler (complete with lines) in my shed. I don't want to part with it at the moment, but if you are local and like to see how the layout went, you are welcome to look it over.
-Ken
(Long Island, New York)
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