My understanding is that it is a metal dilatation issue caused by fairly short (cold) pistons in steel cylinders. Later models apparently have longer pistons.
I'm told by a Volvo dealer that pretty much all older Volvos have it to a degree and that they will keep on driving like that forever. Since the problem goes away once the engine heats up I presume that the usual advice of driving gently until the engine heats up (i.e about 20 minutes no mater what the coolant temperature gauge shows) applies even more here.
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