Front half-shaft... ruined?

I just finished the arduous task of changing the drivers side drive shaft (98 XC70). Had a great deal of difficulty getting the old one out, but thanks to the posts here I was finally able to get it (with the aid of a sledge hammer). The new one went in quite easily (too easily?). I put everything back in place and gave it a start, only to be met with a bone chilling grinding sound and failure to engage in gear.... Am I screwed here or is there hope?

I would test to see if the differential is still operational. If you jack the car up and put both front wheels up on jack stands, (please block the rear wheels) put the vehicle in neutral. If you turn either front wheel, the opposite side should rotate in the OPPOSITE direction via the action of the differential/spider gears what have you. If this check doesn't work, then I think you have a problem. To check further (like okay, you have an eternity, right?) You can take the new half shaft back out, try to turn the flange on the transmission by hand. Does it just freewheel? (If so, you're likely hosed) Good luck!

Thanks for the reply! I tried the test, other wheel did not turn - i looked closer and found that I haven't gotten the half-shaft seated properly. I have struggled with it for a while and now the other wheel will turn, but looking at it from underneath it still looks like it needs to go in a good bit further - i'm afraid to hammer it in... any suggestions?

Whip it back off and make sure the spring-clip (gearbox end) is seated properly then have another go

Do the half shafts on these cars just line up with cap bolts (like VW / Audi) or are there splines too?

It looks like rain and i'm on the verge of taking a 3lb hammer and swinging it indiscriminately so I think i'll stop for today. It seems it lacks 1/2 inch or so going in all the way - but i just can't seem to get it. It's obviously engaged at least a little bit now (since the other wheel turns when i turn this one) - but it's still not right...