volvo v70 key

[hypnoman]

Hi, I have a 2001 volvo v70 and need a second key for it. I have found a place that does the keys and know a Volvo mechanic who says he can program a key to the car, however I have been told by a friend that the key has to come from the dealer as there transponder has extra logic in it, yet the place selling the keys have told me thats rubbish and that my friend at the dealer can program there key transponder to the car with the Volvo software. i am confused now as the prices are very different as from the dealer the key before cutting and programming is £90, however the key cutter can do the key with transponder for £20, and my friend at Volvo says he can do the key for free as it only takes 5 mins.

So, basically I was wondering does the key have to come from Volvo or not?

cheers
stephen