I have reset the CEL with a OBDII reader I bought at Autozone. The problem with any generic code reader you buy (including the wonderfull laptop or Palm-based ones) is that Volvo turns on the CEL for other reasons besides the ones mandated by environmental laws. If the light is on for one of those Volvo-proprietary reasons, the code reader will not be able to read the codes. However I was able to extinguish the CEL in the case when the reader "thought" there were no codes set (the code set was a Volvo-proprietary).
If the CEL keeps coming on, I would decide if I want to put mucho $$$ into solving a problem or just drive the car with the light on. It can cost a lot to figure these things out and in the meantime you can turn off the light to pass annual smog inspections.
Good luck.
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Vladimir. 1998 S70. Base, 5-speed manual.
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