Were it mine, step one would be to change the fluid. Even if it looks good, if it is over 15-20,000 miles it is probably due to a change.

If you do your own work at all, this is relatively inexpensive. While it won't solve a mechanical problem, it will often work. At worst, it probably needed it anyhow.

I am going through the same thing with my 2001 V70 2.4 T. Dealer can't replicate problem so I can't get it serviced under my extended warranty. I am not happy about the situation. I can see some kind of class action coming if Volvo (Ford) isn't more proactive.
Anyway, here is a link to swedespeed which has some more information about the problem...

http://forums.swedespeed.com/zerothread?id=65386&postid=640762

Could be the 2nd to 3rd shift flare that is common on this car. I think your car don't have geartronic (auto + manual shift option) so you can't put into the manual mode and confirm. Both of my 01 V70 T5 and XC70 exhibits this (can't tell in auto mode, but slight flare in manual mode)

Perhaps you can look at the RPM + count the gear shifts to see if it is indeed the 2-3 transition. 2-3 flare is also more prominent if under load like going up a hill. If it is, I know of the following possible fixes

1. Get the latest transmission software update. ~$30 for software + 1/2 labor. The shift profile is quiet different from the previous on my 01 T5, less so on my 01 XC70. It doesn't necessary fix the flare. The new shift profile could "hide" it.

2. There are some comments that the b4 servo cover is a cheap fix for this 2-3 shift flair problem. See

http://forums.swedespeed.com/zerothread?id=56209&postid=523182#523182

Have not yet tried this myself but seems this thread indicate lots of good results.

3. Volvo dealer will usually try to get you to do #1 followed by valve body ($1500 job) followed by new transmission ($4000).

Good luck. My Volvo dealer looked at my slight shift flare and declared this is the way car works! It is a common problem and the dealer doesn't seem to have a guaranteed low cost fix yet.
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2001 Volvo V70 T5 ASR, 2001 Volvo XC70 ASR Wife says we are Volvo for Life, http://howards01v70t5.blogspot.com/

There is a software upgrade to fix the car from going into neutral at a stop. Your problem could be related. It's called the stop-neutral fix. Don't know why Volvo tried this terrible experiment for this particular year but so many complained about it that they came up with a fix. I'm not sure if it's free or not but might be worth asking if it's a free recall upgrade. So...long story short, go to the dealer and demand the software fix.

The other possibility is that indeed your car is having trouble with the ETM (electronic throttle module). This for sure is a free fix at the dealer...they now warranty that part for 10 years or 200K miles. Either way, it's a trip to the dealer for you. Your car doesn't have enough miles for major transmission issues, but a tranny flush would be a good thing to do NOW to prevent such issues in the future.
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1998 S70 T5 Emarald Green Metallic (125K), 2004 V70 2.5T Ruby Red (45K), Previous Owner of Black '94 850 Turbo Wagon (Sold at 140K and miss her). My cars have been running so well lately they've got me worried.