No one is trying to pull your leg, it is true. Disconnecting the battery will cause all of the driving "habit" information to be deleted from the computers. You will need to drive the car for a while to get all of the information stored. The dealer wants to charge $200, that is about 2 hours for a mechanic to make the car go through all of the checks and set values, or you could drive it for 2 weeks.
There have been procedures for reseting values and how to drive the car to make sure all of the values are set. Try looking at http://www.matthewsvolvosite.com/index.php
to find a thread. The search function here for AWD might have them also.
Klaus
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1975 164 w/174,800mi (Sold) 1995 850T w/91,000mi, 1998 V70R w/129,000mi
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