Hi
Things seem to point to the fuel relay, a common issue on 850's. There are two, one for the fuel pump (located behind the fuses) and the other is the fuel system relay, either may have bad connectors (another Volvo issue). The fuel system relay is usually found above the radiator.
Failing this the coil (ignition module) is on its way out. It can cause a weak spark or just cut out. There should be a black wire from the module that is attatched to the body on the front strut tower. Check connections here, it is an earth wire.
Another common cut-out is either the cam sensor or distributor. These are fitted ahead of camshft oil seals. If a seal fails oil can escape onto the CPS or distributor, which again can cause cut outs.
I am sure you will cure it.
Hope this helps
Matt
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