Well after spending another weekend pulling the gearbox, clutch and flywheel I found the crankshaft seal leaking badly. part of the seal turned itself inside out. The original problem was the core plug see below:-
After the seal failed I decided to try again this time making an insertion tool and try again see below:-
using a rawl anchor expanded into spigot hole (somethingI used toremove spigotbearings)
pulling the seal into place:-
Well after all that you would think job done but it started leaking again immediately. When I took the seal out I couldn't find a spring. It was only when I looked at the replacement seal I realised that the updated seal volvo brought out (part number 31339213) doesn't have a spring and is a pretty flimsy thing compared to the original (part number 9458178) which is like a double seal with a spring!
The only thing I think I could have done wrong is not pull the seal in far enough as i left it flush with the housing and I'm not sure if it should of gone in further.
I'm going to have to bite the bullet and send it to a garage with the proper insertion tool (part number 9997174) which hurts me a lot as I've always manged to dothings like this myself!!