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I would at least immediately check the transmission fluid level, and would try looking for the source of the steam/smoke as soon as you notice it, with engine running and maybe someone keeping it at say 4000 rpm just in case it would go away at idle. My first suspect for steam/smoke would be the transmission fluid cooling lines, obviously if your car has them.
Did FAQ say anything about such symptoms?
Caveat emptor: All I know about Volvos is from my 940, and that's only last 3 months since I started seriously looking under the hood, so I may be completely wrong :)
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