Interestingly I just got one of these about a week ago, after getting silly insurance quotes for my old car.
Its a 1999 1.8 petrol auto, 105k on the clock. In fantastic condition, and it runs nicely (for what it is). I find it extremely boring and slow, but that's coming from a Legnum VR4, so not surprising.
It's only the XS spec, so not hugely well equipped (no leather, heated seats, etc).
Seats are very comfortable (what you'd expect from a Volvo), but as 4ndy89 mentioned, they aren't overly spacious inside, particularly in the back seat if the driver is relatively tall.
The dash, and interior in general is quite horribly actually - in mine at least it's just a vast swathe of grey, so I'm in the process of making it a little bit more interesting by wrapping some of it in vinyl - either carbon fibre or brushed aluminium, haven't quite decided yet.
If you like your music, it doesn't seem like the easiest car to fit aftermarket kit to - again I'm in the process of fitting a single DIN stereo (the OEM one is double DIN). Also the OEM speakers are quite small (13cm) and the dash tweeters have very weird mounts. If you're not too fussed about replacing these, try to find one with the premium sound system - has a sub and amp installed in the boot.
In summary, there's nothing particularly "wrong" with it. It seems like a pretty reliable, "does the job" car, looks pretty nice on the outside, but it's nothing special. Depends what you want really - if you just want something with a decent sized boot to get from A to B then you could do a lot worse, conversely, if you want something a bit more interesting to drive, there are many better cars out there (although you may need to up the budget). Also, from what I can see of it, and from looking through the Volvo forums, it does seem (as Dandle has said) like a car which is pretty easy to work on yourself.