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I had my V70 fully serviced two weeks ago and was driving fine until last night - when I went to the car I noticed a small amount of black oil leakage on the tarmac from the passenger side (this could be from the oil change in the service and could be unrelated) then when pulling off after a short journey I noticed a small amount of smoke from the engine. Opened up the bonnet and found very small fragments of rubber which had started causing a bit of a burning smell. On closer inspection the main belt has significant wear on two of the teeth and then to the left which is the auxiliary belt which seems to have completely slipped off causing the wheel to wear on the belt previously mentioned. It drives but really don't want to risk it so it's awaiting AA to come and assess tomorrow. Just thought you guys might have an idea.
Looks like someone did not notice your belt was old and coming apart. That used to be part of a 60k service - when was yours replaced last? And hopefully your tensioner and idler are still ok. ( and the p/s, a/c, and alternator!)