Service Intervals

Hello everyone. This is my first post at AF. On to the subject matter - i just purchased a 2005 S40 2.4i and as i was reading the owner's manual and i noticed that volvo reccomends oil changes every 7500 miles/12 months. That seems a bit high to me. I would imagine that by that time the engine oil would be saturated with moisture, blowby, and excessively dirty. Right now i have about 900 miles on the vehicle and the engine oil already reaks of raw gasoline. Also the reccomended oil for this car is castrol which isn't that special. I have been using Mobil1 synthetic and oem volvo filters every 3K on my S70 GLT SE since it was new and at 80K miles the compression is 180psi across all 5 (spec is 183max) so the thing is just broken in at 80K. Anyway, what do you guys think about the sevice intervals?

7500 miles is what the factory says, but I would do it every 5000 miles or less, its a cheap way of making your car last a long time.