I worked with a guy who had an 01 Jetta (bought brand-new) and he wasn't too happy with it. Although it didn't have any huge problems (i.e. replacing engine/transmission), it had a ton of lesser problems. (The kind that "only" cost $300 to fix.)
One problem with the less mainstream foreign cars (VW, Audi, Volvo, etc.) is that you almost always have to take them to the dealer for service (I don't know what it's like where you live, but dealerships here are WAY more expensive than the average mechanic). Even if you get lucky like me and marry a guy who can fix cars, the parts themselves are also a lot more expensive. This might not bother you, particularly since you already have a Volvo and are probably used to this.
Like other posters, I would highly recommend either a Honda or a Toyota. They're very high-quality foreign cars but are common enough that you can get them serviced anywhere you want. I have a 1997 Honda Civic and I love it. I know lots of people with Hondas and Toyotas and I don't think I've ever heard anyone complain about them.
Is it just the transmission on the Volvo that's a goner? Or are there engine problems? If it's just the transmission and the car only has 70k miles, I'd personally just get the transmission replaced/rebuilt. Volvos are supposed to be great cars. You rarely see them for sale around here unless they've got over 150k miles.
Oh, and you mentioned a warranty in another post -- be careful and read the fine print, because a lot of warranties are pretty useless.
Good luck with whatever you decide.
-------------------- jen
"It's one of the most serious things that can possibly happen to one in a battle -- to get one's head cut off." -- LC
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