"While lightly braking there is a clunk noise from the passenger side. I have yet to determine whether front or rear. The brakes are also pretty spongey and have just been done (by PO). The brake fluid is way over filled as well. I am going to bleed the brakes first chance I get as well as check the pad installation. Anything I should look for or likely culprits of this noise?"

Make sure the bolts which hold the caliper holding bracket to the strut are tight.

"I also can hear feel a click around the shifter area when I press the brakes in park, I never noticed that before in my other Volvos, could it be related?"

Is your car equipped with a shifter lock out which prevents the car from being shifted into gear without putting your foot on the brake first? If so, it is probably the solenoid for the shift lock out clicking as you step on the brake.
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john