Yes the rears are driven when front slip but you don't have to worry about that , Rob is having great fun with his C70AWD conversion and look here ate Hussain's XC70R-
http://volvospeed.com/vs_forum/topic/123483-revised-tune-newer-oil-pan-woil-cooler/
If he can make 500HP+ and run it through a Volvo AWD system then you have nothing to worry about.
He uses a later driveshaft and that is about it for the big power mods to the drive train.
Of course a 245 wagon with 242 front doors and a T5 turbo is my dream but an 850AWD is a nice thing too!
There are a couple for sale right now!