The transmission on my 1993 850 GLT stopped working suddenly (in few hours). It hesitated and then it will not engage or shift unless I push the gas to the max and it starts moving very slowly and goes up to 45 mph. The transmission fluid was changed two weeks before this problem. The car has 121000 miles on it and engine is in excellent conditions. The transmission oil was burnt after driving the car under this problem condition for few miles.

Of the three FWD Volvo tranny's I've seen go bad, two have been 93's. The tranny is specific to this year. Decent used units are harder to come by since a lot of 93's go through 2 or 3 or 4 trannys.
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DJB '65,'68 122, 93 940t, 98 V70 AWD, etc...

Change the tranny fluid again, now! Did the yellow arrow come on? It really sounds like you were in limp mode. Check your codes and find out why your car won't go. Do not drive it the way it is, you are cooking the tranny!
After changing the fluid, make sure you only drain 2 quarts at a time, put the car in low and the mode selector on "S". Will it go in first gear? Is the fluid at the proper level? Both cold and hot? If not, see a technician.
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98 V70Rawd(101Kmi), 95 854T(85K mi), 75 164E(173K mi)

My transmission gave out at 71K. This year car had 2 notable problems, the evap and the trans. My wife was driving it(her car) and it too reverted to limp home mode. She did not do this. Called me and tow truck. My reason for writing this is to briefly tell you what I did. I first called dealer. After negotiating I got them down to 1700 bucks for trans job w/12 mo warranty that only covered what actually broke. Gave AAMCO 3K(never thought I would ever give this chain a nickel) and got lifetime warranty on whole trans. Not perfect job but within 6 months trans failed for different reason. Trans has been out 4 times at their expense(the last about 3 years ago). By the way, the AAMCO guy says he must get parts from Volvo for this trans.