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Go to drinstall.com (I think that's right, or somesuch, use a search engine or search the archives her at brickboard for other install tips) and look at the install on a 7xx car. I did my 90 740T and it was relatively easy (OK, it's rated moderately hard for a professional, me it just took about three hours).
I had to install an Alpine AMFMCD/CD controller head unit (M-Bus) because I had already installed a cheapo Alpine M-Bus CD changer (using an FM modulator to the stock Volvo AMFM cassette) in the trunk...
it's critical that you look ahead to potential upgrades before you just slam in a component! For example, the Alpine system in my car ran about $500 (head unit and changer) but is at least one generation out of date...and I don't have a cassette tape player in the car. OTOH, I can put in one CD without any problem. You will want to consider whether to get a head unit with CD changer control capability and multiple preamp outputs..including a subwoofer preamp. Just cuz you don't put them in now doesn't mean you won't spring for a powered sub later....
Alternatively, I put a Blaupunkt AMFM cassette tape head unit and controlled 5 disk CD changer in the dash of my Saab 900T and maintained cassette capability, CD changer functionality, AND the ability to change out CDs from the driver's seat (the Blaupunkt changer is in the dash..DIN size with pb to change any of the five CDs.) I think the Blaupunkt head unit and changer would fit in the Volvo although you would have to give up the lighter.
Lastly, you will need an adaptor to mate the aftermarket head unit to the volvo sloping console...look at the drinstall.com .pdf instruction. Figure about $24 list for the plastic adaptor...black.
Good luck.
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