Check the carrier plate
WARNING: This page is about a different car, the 2002 Volvo C70, 2001 Volvo C70, 2000 Volvo C70, 1999 Volvo C70, and 1998 Volvo C70. However, it is still accessible from the selected car via links, so may be relevant.
Check that the carrier plate is not damaged or cracked.
To replace the carrier plate see Replacing the carrier plate for S60, V70 gasoline.
To replace the carrier plate see Replacing the carrier plate for S80 gasoline.
To replace the carrier plate see Replacing the carrier plate for S60 diesel (D5244T/T2).
To replace the carrier plate see Replacing the carrier plate for V70 diesel (D5244T/T2).
To replace the carrier plate, see Carrier plate, replacing for V70 diesel (D5244T/T2) with transmission AW50AWD.
To replace the carrier plate see Replacing the carrier plate for S80 diesel (D5244T/T2).
Check that mating surfaces of the engine are clean. Check that the guide bushings for the transmission are intact and in position.