I understand that one can remove the driveshaft without much effect and simply going to FWD. I suggested this to my mechanic and he seemed horrified. His biggest concern was what happens to the gaping hole left at the transmission once the driveshaft is removed? Any answers would be greatly appreciated.

 

The driveshaft (propshaft) bolts up to flanges on both ends. It isn't like a Chevy where you have a splined connection to the transmission or transfer case output. The transfer case in Volvo speak is also called an angle gear or a bevel gear. In short, you can remove the propshaft with no other ill effects beyond no all wheel drive.

Save the old driveshaft, they are obscenely expensive even for a core to send in to get it re-built. You can get the propshaft re-built and balanced at Colorado driveshaft for around $300.00 net, after the core is returned.

...Lee