Well, I couldn't hold off constantly refilling the power steering reservoir anymore. The power steering rack was leaking too much and the Volvo couldn't be driven any longer than 15 minutes and the reservoir had to be refilled.
Leak additives didn't help.

I bought a rack and pinion used from a junkyard. If you can't find one at a junkyard or if you want to buy a remanufactured or new one, I recommend getting it from your local car part store. That way, if you have any issues, it should be under some sort of warranty and you can easily return it to the store.

I jacked the car up and placed jack stands at the front jack points right behind the front wheels.
Here is my video for safely removing the power steering rack from a 2007 and Newer Volvo s40. 2006 and earlier rack and pinion are different but technically removal and installation are pretty much the same. Volvo recommends for this job to support the engine and for the life of me I can't figure out why since the engine and transmission are supported on both sides.

Removal and installation is not difficult to do, but supporting your vehicle safely on jack stands on a hard surface is very important. You don't want to get killed trying to save a $buck$ by an improperly supported vehicle falling on you.

I hope this video helps you understand what's involved in replacing the rack and pinion to determine if you want to tackle this job.

When the new rack is installed get your front end alignment done.

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Intro music:
Dj Rkod - Pulse (George Ellinas Remix) by George_Ellinas (c) copyright 2008 Licensed under a Creative Commons Attribution (3.0) license. http://dig.ccmixter.org/files/George_...