Check thermostat, engine temperature sensor, bleeding the system and test the water pump.
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SOURCE: 1998 volvo s70 heater smells strange and smoke fills the cabin
Your heater core is leaking. The smell and smoke is from the coolant evaporation.
SOURCE: Replace Heater Core for Volvo S70 (1999)
It is your heater core. I fixed mine for $144. Ordered the new part on Ebay and followed these instructions http://www.volvospeed.com/vs_forum/index.php?showtopic=9717 It was very simple, I'm a middle age grandmother! The hardest part was cleaning up all the antifreeze. You will need a shopvac, a small one is $20 at WalMart.
SOURCE: installation instructions/diagram for 1998 volvo s70 starter
IT is very easy get all of the intake ducts out of the way to get access to the starter motortakk off rubber boot and first disconnect neg battery terminal next unbolt two bolts that hold starter and the 3 wires and ground terminal from starter (i have a 14 millimeter wrench that i cuit in half to make removal easier) and you should be all-set
SOURCE: My radio is locked and says off for 1998 s70 volvo need code
got to a Volvo dealer and they will reset it factory default
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