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Can't say this is exactly the same approach you need, but whren I used KYB on my 240 I got that clunk.
The KYB has a journal on the strut piston which engages the bottom of the strut mount differently than the OEM. Even though you had tightened the top nut (strot tower nut), this piston is not pulled up tightly against the bottom of the mount, so it clunks. The nut is bottoming out already on the threaded piston and leaving slack.
(your noise sounds "high" in the assembly, right?)
the solution is installing ovr or two large, thick washers under the top nut. This pulls up the piston to where the journal is tight under the mount and the nut secures without bottoming out on the threads.
Like I said, it may or not aply to the 700 set up
--
"Can't understand why people abort Volvos, either"
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