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I believe it is the Park Neutral Position switch, or something like that. It lets the computer know what position your gear selector/transmission is in. It has a tendancy to get dirty and worn and then has trouble communicating with the computer. You can only start the car when it is in park or neutral, but if the pnp says otherwise, you will not be able to start the car.
For a short term fix, row the shift lever from park to low about a dozen time to clean the connection. One of the telltale signs is the backup lights no longer work in reverse.
Check this site : http://www.volvospeed.com/maintence.htm
Klaus
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98 V70Rawd(108Kmi), 95 854T(88K mi), 75 164E(173K mi)
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