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re: "...Plumb this into the line coming from the trans to the radiator...."
It makes some sense this way, I admit -- cools the ATF before adding its heat load to the engine's coolant in the radiator.
However, another thing to consider is that, in the way you suggest, since the ATF leaves the engine's radiator last, it will never be cooled below the engine coolant's temperature, so that sets a floor on how cool the ATF will drop.
In any case, the instructions that come with the Volvo transmission cooler kit specifically designates inserting the kit into the upper line, which is the return (to the transmission) -- so the Cooler is meant to be inserted after the engine's radiator.
In fact, it cannot be installed with the thermostat coupling any other way, since the thermostat might not even work properly having the fluid flow the opposite way (although I'm not sure, as I've never tested it).
And installing the cooler after the radiator makes some sense, too, as the ATF can then cool below the coolant temperature (and it does -- see next), and returning such cooler ATF will serve to cool the transmission further.
I personally have measured a 25 deg F. drop in ATF temperature across the cooler, from the input tank to the output tank. I used a RayTek hand-held IR thermometer ("MiniTemp") and placed it right up against the tanks.
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