As my friend from the U.K would say "Spot on". Great photos and clever solution. Looks like your solution was the only way that pin would see the light of day.

Haha, yeah I was eyeballing my options and thought about a sawzall. However, I was planning on getting the car on the road shortly. One of the bushings is cracked, so I think I might try to replace it though.

That's good to know about the clearance and removing the shift lever.

I can already tell the starter 'hump' on the bellhousing is going to annoy me when it runs into the transmission tunnel as I pull things backwards.

One good thing about Volvos though.. Really rusty bolts do come loose. Meanwhile on my Jeep, rust free bolts just break when you look at them funny.

Good to know I'm not the only run with a rusty shifter pin. Sometimes things like this hold up the whole operation.

I was thinking about making a mini press to drive the pin out. I just wanted to make sure that other people have had the problem and I wasn't missing something simple. Something like a chain breaker or a tiny version of the rear trailing arm bushing tool I made, haha.

Great photo!
What has worked for me in the past is to get a socket ( or a ring of some sort) with a hole larger than the pin, and then use pliers to squeeze the pin into the socket. I have a large pair of needle nose Vise-grips, and a pair of channel locks both of which will fit in there. Once the pin begins to move, I've found an L-shaped Allen wrench can be used to keep it moving.
We get salt induced rust here - it's a pain.