Same issue here.
Bought a 96 850 turbo last weekend with SC-816 unit, and FM stopped working within 2-3 days.
Have tried removing power to reset, re-entering security code, and every function that is in the owners manual - with no luck.
Started thinking that unit went bad, the antenna/connector was suspect, or one of the kids pressed something that might have messed it up.
Today I found a post online that explains some "hidden" FM modes in this unit:
http://www.jimrothe.com/volvo/sc816.html
Will update once more is known.
Cheers.
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