Ed,
You are the latest victim of the infamous gear position sensor (a.k.a. PNP switch.) This problem is extremely common among 960/S90 owners. Just do a search in archives with keyword "PNP" and you will get tons of information. It is interesting that symptoms vary a lot from car to car. I had this failed couple of years ago, but I guess I caught it early enough and I never had "no-start" problem. But as in your case, my reverse lights were not working and I had a fat arrow lighted on the dash. Also, I believe I had blinking E/W lights at the transmission lever. The replacement part is about $200 plus or minus $50. A good indy shop should be able to do the whole job for under $400.
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