Read your other transmission posts in the OBDII port thread.

Here is a bunch of info on this transmission if you are interested. From what I have read, shops in North America just replace valve bodies or trannys. But I've read UK shops changing solenoids for successful repairs.

Read "Complex Transmission" at the end of this link. It will point you to lots of internal details on this tranny if you are interested.

http://howardsvolvos.webs.com/driveline.htm
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2001 V70 T5 ASR, 2001 XC70, http://www.freewebs.com/howardsvolvos/

Your transmission might be a goner :(

Here are the codes

http://www.troublecodes.net/OBD2/Pcodes.shtml#700

p740 = Torque Converter Clutch Circuit Malfuction
p785 = Shift/Timing Solenoid Malfunction/ 3-2 Shift Solenoid Circuit Electrical

Sounds like they updated your transmission software (Should see TCM=Transmission Control Module on your paperwork)

The only low cost paths left is ATF change and B4 servo cover. But the transmission might already be too damaged.

Here is more info for your reference

http://howardsvolvos.webs.com/driveline.htm

Valve body job ($2000) may repair it but at your milesage, rebuilt tranny ($4000 including a new valve body) maybe the better way to go if low cost paths don't improve it.

No oil pressure is probably from either internal sludge (Use AutoRX to clean it) and/or oil pump o-rings. See below

http://www.volvo-forums.com/t2414-oil-pan-oring-replacement-instructions.htm
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2001 V70 T5 ASR, 2001 XC70, http://www.freewebs.com/howardsvolvos/