There is no gasket- it uses an anaerobic sealant. This video shows an engine and a cam cover that is really no different than our cars (I've had 850's and an S70 as well as a V70 and they are no different- all basically the same engine):
Btw, you loosen the screws one at a time and a little at a time as you hold the cams in place and do things very carefully. Anyway, check the video out- it gives you a head's up on how serious taking the cam cover off is, and probably, your leak is not from the cam cover anyway.

 

Thanks for the reply I saw the video however it hasn't helped with the procedure to take it apart. I am well aware of this being major and have the tooling and ability to do so. Just wanted to make sure it is done right. There is no oil on the top of my cam cover. I have throughly cleaned it as well as my spark plug wells. However when you take out the ignition coil there is oil in the spark plug wells. I can see a distinct line of oil where the cam cover, gasket/sealant, lower head meet. I'm positive it is leaking.

 

There are O-rings between the cam cover and the head that seal the spark plug wells. They don't leak very often but it's not unheard of.

 

Correct.
You'll need the spark plug hole o-rings & sealer for the rest. Also, oil fill o-ring, rear cam plugs & I'd consider doing the cam seals also as they will be disrupted. Most parts can be seen here.

Removal is simple as removing the bolts & tapping upward with a soft face hammer.

Watch end of this video:

The trick is reinstalling us you need to press the cover downward evenly as the camshaft lobes press on some of the springs. This is where the special tool comes into play. I like this video because of the clear pictures. This gentleman made his own special tools & modded the procedure a little bit. Pretty slick actually.

 

Sorry to bump an old thread. I'm waiting on the delivery of a Volvo cam locking tool which also includes the tool which holds down the valve cover while removing / adding the cam cover bolts.

How important is it to use that hold down tool when removing the cam cover? I'd like to get started on the head removal asap.

 

While I don't strongly recommend it, I have done it a couple of times or so. When I did it (using the Volvo special tool "duck pliers) to pry it off the head, the cam cover popped off somewhat alarmingly from the tension of the valve springs on the cams. I only did it like that because I was rushed for time, it wasn't my car and I was pissed at the service advisor for over promising the job.

 

You can also replace some of the bolts with longer versions so you can limit the amount it travels during the "pop".