Hello Edwin,

my 86 245 has this problem. There's a good site for valve body rebuild. follow the e-address below. one gasket set is not cheap--about $91 at my volvo dealer. most parts are dealer items only, except for the transm filter & gasket. the ball bearings are cheap though--4 total in valve body, but for gears 1-2, 1 is needed. measure all check balls for 5.5 mm dia.

http://www.volvoclub.org.uk/faq/VolvoAW7XValveBodyService/AW7Xpage2.html

i bought the transm manual this site calls for and it gives some additional details that can help you to do the valve body job.

some part #s & local volvo dealer prices
1377746 5.5 mm check ball, ~$2
3520329 tranny filter gasket, 2 needed ~$3.82
1239683 transm pan gasket ~$11.25
271292 gasket kit, AW70(?) ~$91

i checked with my local volvo specialist shop and they don't even touch the transm.

regards,
byron golden
86 245
92 245