Does anyone know where I can get a driver side Xenon headlight assembly for a 2004 S60R. Mine is getting wet inside and blowing a fuse every time a headlight is plugged in, garage said I need a new assembly and the dealers want over a thousand for one. Cheapeast I found so far is $850 which is still outrageous. A good used one for 400 or 500 would work for me at this point.

 

ah, junk yard I'd guess, but why not try find the source of the leak? May save you a couple'a bucks

 

Mechanic told me he thinks the whole assembly is bad, keeps blowing a fuse every time a bulb is plugged in and it goes to initialize when turning on.

 

Maybe the ballast is bad.

 

So what your mechanic is saying is that we finally graduated to $850 throw away items? I'd look for another mechanic or try figuring out yourself what could be wrong with it, after all it's just wiring and some components that if not easily still can me replaced.
Here is approximate list of components (not sure if it fits your particular install) try calling these guys or anyone else willing to spend a minute helping you.
good luck