I can concur about the electrical problems!
My cousin's brand new S40 just spent 3 days at SM to trace an electrical fault that causes the interior lighting to remain on all the time. Still need to send it it for another day or so to replace the dodgy ceiling light switch.
Oh, and the boot only has 2 loops so no luggage net for him. Also, Volvo does not provide a breakdown warning triangle with the car. Need to use a tree branch and stick it in the petrol filler door!
Otherwise, a really nice car to drive. Handling is rally nice. Much better than any other Volvo (except XC90, not tried it). Better than my 93ss too, IMO!
I wish I my 93ss had the S40 suspension/handling setup. That will be sweet!!