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Hi George. The R has AWD and alcantra seat inserts, leather door inserts that do not bubble, and a surround radio/cd. Same engine as the T5, except slightly modified/polished intake manifold. The R also has sport springs (read less give) and a front bumper that is a little lower. The 2000 R had twin exhausts from the factory.
On my 1998, I get 28 mpg hwy and 21 around town. I use 10W30 Mobile 1 and 34psi on all 4 wheels. No roof rack or "spoiler". A real sleeper, especially in the snow when all 4 wheels have traction. No torque steer, ever. But the turning radius is larger than the FWD cars.
I figure my next Volvo will be a V70 that has a diesel generator and 4 electric motors at each wheel. Just like the C30 demonstrated at Frankfort auto show 2 years ago. 120 mpg!
Klaus
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I still miss my 164 and my 854T. Just driving a V70R :)
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