Well I solved the problem by reading about another person having the same problem. The solution was to add fuel to the tank and it cranked right up. I believe the engine was starved for fuel. Before adding the additional fuel I could here what sounded like th efuel pump coming on and shuting off shorthly after trying to crank the engine. Prior to adding fuel (and with the engine off) I pressed the valve on the end of the rail and only a small amount of fuel dripped out. However, after adding the additional fuel the fuel pump sound went away and the fuel rail fitting sprayed quite a bit of fuel indicating it was up to pressure.

I'm still confused as to why the fuel gage indicated I had over 1/8 of a tank and it acted like I was out off fuel. Even the low fuel light did not come on. I guess my gage may have been stuck???

Thanks to everyone for contributing their Volvo life experiences.

Bill