Needle bearings and Caps of u-joint were all rusty and seized, fell on ground and were either vacuumed or thrown away during the process.
Volvo only offers the centre driveshaft as a complete unit for over $2000 CAD plus tax. This includes the carrier bearing. This is not cost effective. Note that these cars have two carrier bearings: A mini one for the longer front passenger axle shaft, and a larger one in the centre of the car that supports the main front to rear driveshaft. This vehicle did not have any carrier bearing issues, but this is also something you should not rule out and need to check once the driveshaft is out of the car.
The All-wheel drive was working with this problem present. This is not a fix for non-working all-wheel drive. If this problem is present though, it can create further expensive damage to other drivetrain components
Volvo V50 T5 AWD
Volvo S40 T5 AWD
Volvo S60R
Volvo V70R
Volvo XC70 AWD
Volvo XC60 AWD
Volvo S60 2.5T AWD
Volvo P1