I have a 1994 850 turbo wagon w/ 101K miles. Over the last week I have felt a slight vagueness in the power when I pressed the accelerator. The car finally gave up on Weds. After having driven 25 miles on the highway, I came to a stop at the end of the ramp. Resuming acceleration, the car made an "eeiiih" noise and there was no power in the middle gears. Luckily I was very close to my office and was able to get the car to crawle there in the low gears. I also notice that the reverse doesn't really respond to the accelerator.

My volvo tech, (independent shop that only does volvo's-they have the volvo scan tools, etc)say that after having diagnosed the car, the result was no pressure in the various gears and recommended a rebuilt replacement at approx $2500 ($1635 for part + labor).

My questions to you:

1. Does this sound like the right course of action to you?

2. Is $2500 the going rate for a job of this sort?

3. Do I have any other options available other than complete replacement?

4. Other matter, they quote $460 parts and labor for both o2 sensors does this sound right?

Thanks so much for your help in advance, you've all been a get resource in the past.

Perry