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Based on what you wrote, I would move forward and flush the tranny with the cheapest tranny fluid you can find and then refill with the correct synthetic ATF for your tranny. I used Mobil 1 synthetic ATF in both the tranny and power steering systems in my 850. Do check what is correct for your tranny first.
You will need an OBD-II type code scanner to read the diagnostic codes in your car. The 95 and older Volvos have OBD-I which can be read using the buttons under the hood.
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Will I buy another Volvo??? We'll see....
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