Hi, Al - - -

The wife's car is a '98 V70XC, but the awd components remained unchanged
for '99.  The mileage suggests a contributing problem of some kind -
such as inadequate lubrication.  *If* your friendly Dealer has been the
Service provider, or if you can demo that the vehicle has been seen by
someone who would notice a leak, your chances ought to be on the good
side.  It's pretty sure, though, that VNA is going to want some
continuity of Service to resolve this problem.

I've been assuming that the differential in question is the one in the
rear.  If it's the front diff, there's even less excuse for premature
death.  The bevel gear (a part of the AWD system) will fail before
problems in the rear can cause front side failure.

Good luck.

bob noble
Reno, NV, USA

Look at www.brickboard.com and search for 'bevel gear' .... I presume this
is the one you are referring too? Its the centre differential (aka the
transfer box) and seems to be a known issue....

Alastair