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The only thing that can leak are the head gasket or the seal at the top of the water pump. You wouldn't be the first Volvo owner to get that seal folded over a little bit- may have sealed at first but with a few heat cycles on it, the seal will start to leak. You can buy just the top seal and gasket separate from teh waterpump, but you will have to remove the WP again.
I'd be surprised if it's the headgasket unless you overheated the car pretty severely.
Good luck!
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Rob Bareiss, New London CT ::: 86 244DL, 87 244DL, 88 744GLE: 625K total
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