Construction of ipod housing in S80 center console.
Instead of drilling a hole in the existing recessed CD holder, I removed it completely (Fig.1) and constructed a new housing. To remove, insert screwdriver, push down and lift.

(Fig.2)
Cut 3 or 4mm particle board into 2 sizes
- 113mm x 132mm for bottom board
- 120mm x 186mm for cover (to be covered by felt later)
Then file the edges back (as much as 4mm) as the console platform is actually a little concaved.
Cut matching felts, fold over edges and glue. (fig.3) I use hot glue gun because it dries quickly.
Cut 4 pieces of 12mm rubber insulation sheets (see your local air-conditioning/industrial refrigeration installer for off-cuts.)
115mm x 125mm - base that is glued to the bottom board. Ipod sits on this.
117mm x 130mm - cover and hides Ipod should false bottom be opened. (visit link to see installed Ipod mods)
45mm x 105mm/93mm (trapezoid shape matching base angle) - glued vertically to edge of base. This is the sidewall (fig.5) that seals the side gap in the center console and the ipod connector comes through here. Tuck in part of the sidewall to seal side gap.
117mm x 130mm - glue the last part on the edge of the bottom unfelted portion of lid. (fig.4) this should sit on the recessed portion of the center console, especially if you have a thinner ipod like the video ipod.

Glue a small offcut felt to create lip for easier access.

According to Ipod manual, Ipods do not like extreme heat. I have heat tested this, parked it in the sun, windows up. Ipod was still cool being sandwiched by these 2 insulation foam.

http://www.volvo-forums.com/1999-Volvo-S80-code12-cid231.htm
A link to my garage that shows more pictures of installed new Ipod housing.

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