Peugeot do not have any airbag fault codes for the 307 so there is no reference to what the code means I'm afraid.
the most common faults are related to the Com2000 (steering wheel control module which incorporates the airbag ribbon cables).
Firstly, clear the fault and see if it returns, if it does not, turn the steering wheel from lock to lock with ignition on, if the fault then returns only when turned you definitely have a Com200 fault. If the fault returned immediately (after cycling ignition) test with dummy airbag resistors.
If you do not have air bag test resistors try removing the airbag from the steering wheel and applying a short to both airbag connectors (may only be one dependent on year). Turn the ignition on and recheck for stored faults. If the Com2000 is ok you should see 2 airbag trigger short circuit faults, if you don't then repeat at the connectors to the Com2000 (2 pin brown and blue from memory), if you then have short faults, its the com.
Phew, hard to write, easy to do!!
I have fitted several Valeo boxed units with no troubles. If the car has ESP you will need to re calibrate steering angle sensor after replacement.
Good luck,
Paul.
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