You can reset the check engine light with an obII reader with a reset function. The service light requires a special tool, at least for the 1998 model year. Other years, before and after, are different I believe. The check engine codes are stored in the vehicles computer and stay there for a brief time period, even after they are cleared with the OBII reader, so just disconnecting the light bulb is not going to do you much good. Check here and at Volvo Speed for an alternative to the OEM air pump-I believe you can modifiy a vw pump to work on the volvo at a much lesser cost.
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