I have a 98 V70 XC with a new issue. I bought the car a couple months ago with A TRACS light and an ABS light on. It is also throwing a manifold pressure code. I doubt that has to do with this new problem but I thought Id mention.

Yesterday the car started making a loud clanking/hammering/knocking noise from what appears to be under the center of the car. It happens, for the most part randomly. I havent driven it at high speed since hearing it. The frequency of the pinging is consistent with the wheel speed but stops and starts randomly. Also it is randomly and occasionally associated with a shudder/vibration. Any ideas? Thanks for your help!

 

I have a 99 V70 that clanks. Mine is the catalytic converter is falling apart on the inside.

 

Our 1998 V70XC had the same sounds as yours.
Driveshaft and bearings were bad. Replaced and thereby allowed the owner of Autohaus Bavaria in our town to buy himself a new Jeep Rubicon and lift it, etc. ;-)

 

If it is the propshaft, about 450.00 will get you a rebuilt unit from coloradodriveshaft.com. My indy removed my old propshaft for 50.00 and will put in the new for 75.00. My car is a 98 v70 AWD, not an XC but I think the propshafts are the same.