Recently purchased this 2002 V70 and decided I should change the fluid since it has 115000 miles on it. Purchased Seafoam cleaner from IPD and the synthetic fluid for the change. I also noticed that sometimes not always the transmission will hang between first and second like it's in neutral for a second or two. Will this be corrected with the flush or will I need to replace something else? all advise appreciated

Thought I'd bring everyone up to speed about my experience with this thread. I flushed the transmission and the problem really didn't go away so I scheduled a check up at Peter's Auto near Portland, Oregon. They of course re-flushed the transmission but also checked for current software downloads. Turns out that my transmission would go into neutral at a stop which what was set up originally. The upgrade changed the neutral to once in drive it stays in drive which solved all my issues. So if you have a similar problem take it to a reliable mechanic that can download current software fixes and this fix will be history.

While a flush is needed at this mileage, you should also talk to the dealer to find out if you are running the current level of software. There are a lot of updates supplied by Volvo.

Do the flush first, it always helps to keep the solenoids clean.

Klaus
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Always willing to listen, just not able to take direction.

There is a very off chance that you're pressing the pedal down slightly when it shifts. If this is the case there isn't anything you can do. The flush won't hurt, it could improve things, but it is really like rolling the dice there. Use the right fluid, improper fluid might cause this. That doesn't mean you gotta get it from the dealer, IIRC Mobil 3309 (http://store.avlube.com/mobilatf3309.html) is correct.

Does this manifest itself regardless of how you drive? If you floor it will the same thing happen or will it shift properly? Also, if you're real light on the throttle (<2500k rpms) same thing?

Check engine mounts too, perhaps it'd be worth talking with the dealer (after the flush) to see what all they can figure out in an hours labor. You'll want them to reset the counter for the tranny fluid, and perhaps the adaptation (the car changes pressure with shifting to 'provide smoother shifting/longer life'). Maybe they can read something with regards to shifting that says its a certain sensor...
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If you're not driving it "like its stolen," are you really driving?

It's a roll of the dice as to whether it will fix your problem.
Kind of a crappy answer, but there really isn't any way to tell.

My S60 does exactly the same thing. It hunts for 1st gear and if you're not careful the engine revs and then suddenly engages with a big clunk/slam. This is not encouraging. My indie mechanic changed the fluid and updated the software. It changed nothing. He also told me that he's seen transmissions last quite a while with this. I did, however, purchase an extended warranty package in anticipation of the transmission not surviving the next 60K miles.