Hi-
I have the exact, same problem on my 91 740. If you do a search for "hesistation" in the FAQs and the RWD boards, you will find that we are not alone. Unfortunatly, there are a myriad of things that could be causing the problem: IAC valve, FPR, blocked up cat, timing belt jumped a tooth, fuel pump, and, of course, the ECU.
I'd have a good volvo shop start with the cheaper answers.
I'm just about to put in a new fuel pump and I will post if that's the answer to the problem. Really, though, I'm just in denial about the ECU.
If it's any help, I've found that my hesistation isn't quite as severe if I go easy on the throttle the first few times I accelerate in the morning. I haven't had any problems hill-climbing, though.
BTW- $1300 for fuel pumps seems insanely high. I'd get a 2nd opinion.
good luck
mp
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