OK, thanks for the great input! I went to Volvo this morning and they downloaded the faults. They are as follows: TSM002A- Incorrect Gear Ratio- 3rd Gear..... TSM00C -Shift Solenoid S2 Hydraulic Fault..
They gave me two options, first replace the valve body for $1236 or second replace the tranny. Of course they recommend replacing the tranny since there is no guarantee that the valve body would fix the problem. If the valve body does work it might only last a month or two. The transmission replacement will cost $3100.
They are waiting for my decision by the end of today 7/21. My car has 75K on it and thats another they are suggesting a reman. transmission. Any help on this matter would be greatly appreciated1
Dave

this transmission problem seems to be rampant. can't we file a class action lawsuit? any lawyers on this board?

First of all, I do feel bad for those who end up needing this costly trans replacement and I agree that any trans should last longer BUT does anyone here really know details as to what's involved? I'd have to think that starting such a suit against a very large corporation (with VERY deep pockets) won't be an easy thing. One would also need proof, details, facts as to how common the problem is, how often these parts fail, etc.
The class action suits that I've heard of in regards to automobiles dealt with safety related problems, things like brake, steering or suspension related problems that could (or did) kill someone.
NOTHING ever happened to Volvo in regards to their past issues such as AC evaporators in 850s and those have been a far numerous repair item over the years.
One thing's for sure, those who feel that they've been slighted won't buy the same product again.

"hydraulic fault" usually means that there's a bad o-ring or seal inside the trans, not likely a valve body.
Although not cheap, the reman trans comes with a 1 yr parts warranty (labor included too IF replaced at a dealership). I personally wouldn't dream of trying a used trans considering the 15 hours of flat rate time required to replace it. A used trans might have a 90 day warranty at best and there's no way to know how many miles are on it, its history, etc. It's a big gamble.

1. How about a USED transmission? (I don't know anything about the year-to-year interchangability of the Geartronic. If it's the same transmission in the 2003, there are probably some wrecked S80s around with 10k on the transmission.)

2. Do you have an independent Volvo shop in your area? As a rule, I try to avoid dealers once the warranty runs out. (That's not just for Volvo, it would hold for a Toyota, too).

-d groundhog