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skinny-
Though launching is fun; you can also just try turning the prop shaft by hand - if it spins.. walk away or get a decent discount and replace the sleeve (hoping it's the sleeve).
Verified my P2 XC90s AWD this was having spent many hours surfing forums.By the way, if you do end up with a Volvo of P3 flavour then a VIDA DICE is a 100% must have. It enables you to basically do FULL Volvo diagnostics at home for the price that a single trip to have it plugged in would take. Gives you full step by step for everything - troubleshooting to resolving - and all wiring diagrams too!
yeahdext
With an XC70 of that age check that the angle gear hasn't stripped and turned it into FWD - also, note that some owners will deliberately convert them to FWD, so either get it well checked over by a mechanic you trust, or get someone (possibly not the current owner) to watch you launch the car on a loose surface in order to see if the rear wheels apply any drive to ground.