I will try to explain the steps I took for now. I can try to snap some pictures this weekend to better explain what I did. I would recommend doing one cable at a time so that you can use the second for reference if needed.
Step 1: Remove the center console
Step 2: Remove Rear Seats
Step 3: Remove the plastic trim pieces by the two rear doors (requires a T-25 Torx driver IIRC)
Step 4: Lift up Rear Carpet to gain access to the cables which run under the insulation
Step 5: Loosen Parking brake lever
Step 6: Unhook parking brake cable ends from parking brake handle
Step 7: Unfasten plastic clips which hold parking brake cables to rear floor pans (Flat screwdriver works)
Step 8: Remove rubber grommet where cables exit rear floor to outside of vehicle
Step 9: Pull cables out of the car from underneath
Step 10: Remove cable clip at body mount (at back of rear door) – My cables were really bad and had expanded some so it required me to cut them at this point in order to remove them in two pieces. I used a cut-off wheel on my 4″ grinder.
Step 11: Remove nut fastening cable to rear control arm (Requires a 10MM wrench)
Step 12: Remove clip at rear brakes which holds end of parking brake cable (mine were really rusted and required a bit of manipulation so I will try to post up picturess of what it looks like now)
Installation is the reverse of the removal. I couldn’t get the new cables through the hole at the body mount where the stock ones were installed, so I ran them beside it. I will try to take a picture of what it looks like.
As for the rear brakes – I got new parking brake shoes and new springs from the Volvo dealer. I think I have a picture somewhere of what it looks like and I will try to post it up sometime this week.