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Hi Keven,
Sure sounds like the PNP switch causing your problems. It is the switch assembly that signals the ECM and the transmission control module, telling it what gear is selected and if the transmission is in park or neutral. Go to volvospeed.com/bay13 for replacement instructions. It should be no problem for you if you were able to R/R the tranny.
I suggest getting the switch from AutoZone. ($54) They call it the Neutral Safety Switch. You will not need any alignment tool. You can allign it by eye or you can use the back-up lights.
Good Luck,
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Tom 69-1800S, 72-1800ES, 96-850T
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