You are in luck because your code is stored in the car computer. I had 1603 about a couple of months ago. Take it to the dealer and they will replace the ETM under the extended warranty (200k miles, 10 years) after reading this code. ETM job is about 2.5-3 hours.
Arm yourself with more of the ETM knowledge prior to visiting the dealer. It may help you in discussions with them.
Here is link on volvoxc including my 1603 code + ETM replacement experience.
http://www.volvoxc.com/forums/showthread.php?t=7317
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2001 Volvo V70 T5 ASR Wife says we are Volvo for Life, 1992 BMW 535iA becoming The Ultimate Driving Machine
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