I know this is probably an easy one to answer but have to get a few inputs on this one.
Just bought a 1996 850 turbo sportwagon with 137,000 miles. This car was obviosly well maintained and apparenty not abused. Very very clean. Now I work at a car detailing shop and do all the technical work, install remote starts, troubleshoot electricals and mechanicals, restore car interiors, etc. I got this car last week, took it to a volvo dealer for check over and one of the things that came back was how dry the engine was, not the least bit of oil or grime on it. Very clean! Drive for a week and suddenly I'm getting oil dripping from the drivers side. I checked under the car, looking up near the driveshaft seal, the whole area is wet with fresh oil. Mind you there is no dirt, its all clean aluminum with a coat of oil. This is not transmission fluid, its fresh engine oil. So the driveshaft seal could be counted out.
What I'm wondering is there a oil feed to the turbo that could be leaking? The turbo is directly above the trainy gearbox and most of all the area is damp with oil from under the turbo straight down past the driveshaftand covering the bottom of the transmission. The oilpan is still dry though.