One of the most common SRS issues is with the airbag's SRS Contact Reel in the steering wheel. There is a thin mylar connector in there that winds and unwinds as you turn the wheel. Eventually it wears out and breaks the connection. This isn't very difficult to visually inspect and the repair isn't difficult either. Call fcpgroton.com for pricing. Like another poster said, make sure you disconnect the battery (and have radio code) before attempting the repair and don't test the airbag with an ohm meter or really mess with it in anyway. If you need instructions on how to get it in and out and how to "reset" the new contact reel, so that it's wound correctly, etc., post back here. Otherwise, leave this repair to someone who has done one. After the repair, reset the SRS light and hopefully this has solved your problems. I can't believe that the dealer is stumped on this one. It's a fairly common repair on 850's and 70 series (older) cars. Even my indy mechanic knew all about it and replaced this part on our 850 when the SRS light wouldn't go out.
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon
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