If it's loose it's probably a broken adjuster clip (at the top edge inside the headlight), they do tend to snap. There's a guy that sells a better than OEM one on eBay http://www.ebay.co.uk/itm/Volvo-S40-.../221690938504?
Check out this thread for a strip down guide
http://www.volvoforums.org.uk/showthread.php?t=205212
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