This looks ominous alright, but in reality was just a wakeup call to get attention on a poor idling oil pressure problem. The light in this picture, was caused by a typical trouble with the pressure sender wire insulation. But I would see the light normally at hot idle, running Mobil 1 10W-30, going out as soon as the throttle was opened. Having read the PO's receipts (I am the second owner) I was fairly sure the shop bungled an oil pump change at around 254K, evidenced by the subsequent complaints and the jug of Castrol left in the trunk. Before attempting the following, I read an account by Paul Despres published on the Brickboard at http://www.brickboard.com/ARCHIVES/2000FEB/20066779.shtml which was fairly recent at the time. I also studied the procedures in Haynes, Bentley and the Volvo green manual. The Volvo documentation suggests ten steps: (1)Drain (2) Remove belly pan (3) Remove motor mounts (4) Release steering shaft (5) Lift engine slightly (6) Remove left engine mount (7) Remove crossmember bolts (8) Remove engine-bellhousing bracket (9) Remove sump screws and (10) Rotate and pull down sump.
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