I pulled the bonnet catch on my UK S40 1.6 (2000 if it makes any difference) yesterday, and the lever went all floppy...the wire had come out of the catch. Had a quick look and tried to lever the catch through the grill, local garage couldn't sort it either. Called Volvo, they want "anything between £95 and £195 + vat and parts" to sort it out. As this is the same (only) garage that charged me £28 labour PLUS PARTS to change a wiper blade (3 minute job, meaning they must be pricing labour at £560/hour!) I thought I'd give it a miss and see if you fine people had any suggestions.
What I can see is a little lever which you pull up, but fiddling with a screwdriver didn't seem to work. Is there something else I need to tweak first?