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Transmission Slipping S40-V40

Hi,
I've had my 2001 1.9T for almost 3 years now. Ever since I've owned it, the transmission would occasionally slip. It would do it maybe once a month at the time, so I did not think much of it (thought it was likely not mechanical but something with the electronic transmission control). My mechanic told me not to worry too since I have an extended warranty (great I said!). As of lately though, this slip has been occurring on a more than weekly basis. The slip is very smooth and there is no grinding noise or clunk at all.... it's just like the transmission falls into neutral for a split second and everything is back to normal. It usually happens on light to medium acceleration. I had the dealer check it out and of course it did not happen on the test drives. So they ran a diagnostic and found and error code (TCM-29) when trying to update the transmission’s software. They told me I need a new Transmission Control Module (part# 30644070) as per a Volvo service bulletin. Has anyone had any experiences with electronic versus mechanical transmission issues and know if this makes sense, or is it a mechanical fault?
Thanks, in advance






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