Bleed the clutch in your Volvo by filling an clean or new oil can with brake fluid and attach a hose to the slave. If you do not have an oil can you can pick one up very cheap from here: oil can for clutch bleeder. For under ten dollars this is something useful to have around. Just make sure to lable it with a Sharpie "Brake Bluid Only". Now, suck some fluid out of the master cylinder and keep the cap off to avoid spilling. Open the bleed screw and attach the hose and pump the oil can. You will see the master cylinder fill with fluid. Repeat this process a couple of times and you will have quickly removed any air from the system. The movie below will show you how easy this process is.

This guide will work on pretty much any Volvo from the 850 to the S60. For additional information on this process or for discussion see: Clutch Bleeding In The FWD/AWD Section.