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I must disagree and point you and other would be readers to the FAQ:
http://www.brickboard.com/FAQ/700-900/BrakeFluidComparison.htm#BrakeFluidComparison
Only Glycol (Polyalkylene Glycol Ether) fluids are shown; no silicone DOT 5 fluids are listed because they may not be used in Volvo cars without major brake system modifications. The new DOT 5.1 glycol fluids may be used, since they are compatible with DOT 3 and 4.
I'll go a little further and add my 2 cents in. The last time someone posed this question, it was pointed out that DOT 5 fluid is unable to absorb water contamination in the brake system. As a result, all the water settles down to the bottom near the calipers and boils extremely fast. You will often see DOT5 used in systems that are replaced frequently, such as race cars, where water does not even have a chance of gathering in the bottom of the system because their fluids are flushed after every race.
http://www.shotimes.com/SHO3brakefluid.html
The DOT 2 spec is for drum brakes and is obsolete. If you have any DOT 2 in your garage, throw it away! DOT 5 is for silicone brake fluid. Silicone brake fluid (DOT 5) should be avoided because it is not compatible with regular brake fluid, it is hard to pour without introducing bubbles and thus results in soft pedal feel, and moisture still gets into your system and will pool in low areas like your calipers and encourage rapid corrosion. STAY AWAY!
As for your original questions, 1) Yes. 2) Yes. I suggest getting ATE Super Blue, and alternating your flushes with ATE Gold. Gold is the same thing, just a different color. Makes it easy to see when it's new fluid coming out.
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Kenric Tam
1990 Volvo 740 base sedan (B230F)
My Volvo 'Project'
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