The tapping you are hearing is most likely the injectors, all 850 injectors make a clicking sound. Also a friend of mine who owns a small chain of independent tranny shops (he's good and he's honest) told me some time ago that it is much easier on an auto transmission to drive it in the selector position just below OD while driving about town. The OD is there to get the fuel mileage required by the govt. So I always drive in 3 around town and 4 on the freeway unless traffic is slow and heavy, then I back it down to 3.

I think the 850 is the last of the great Volvos before Ford pollution set in...

96 850 Turbo

Welcome to the brickboard,

I have A 93 850 glt 5sp w/101k on it, that year has had tranny problems
but it could be a sensor or the pmp switch,

the tapping you hear could be the fuel injection rail, Mine taps like crazy
has been for years.

good luck

You can order the glove box "kit" (manuals) at:

http://www.volvotechinfo.com/

Valve tapping is common. Just search on "valve tapping" (below,
to the right). An oil change often helps. Sometimes some oil
seals need replacement since they distort and oil pressure drops
to the head. Thats from the top of my head, like I said, do a
search and you will find plenty on this.

Does the transmission have a sport/econo mode switch near the
shifter? Sport mode might shift more often. My wife has a 95
and the auto tranny on her car seems reluctant to down shift --
I'd rather have it shift more often.

As far as legendary goes, many people think it mean drive and forget
the car. Thats not the case. they need to be maintained pretty much
buy the book. Do that and it will last a long time.

Note the timing belt needs changes more frequently on 93s. Something
like every 50K miles. You may be due. There would be a sticker on
the timing cover indicating last time it was done. Don't put this off
if needed since a failed timing belt will cause major damage (the valves
will hit the pistons -- it is an interference design). That really
is the first thing you should look into (I think).

Welcome Skip,
I won't comment on the shifting, perhaps it's very different from your last car. The indicator on the dash sounds like a burnt bulb indicator (?), the valve tapping is normal however. I like to think the 850 is legendary for it's durability although I'm sure there are people here who will tell you otherwise.
I remember finding a site last year with the owner's manual on line. But I can't find it now unfortunately.

Goood luck
--
'98 V70, '95 850 GLE 10V