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Remote / Keyless entry trouble, sensor in car does not seem to work. (V90 -98) 1998

I few months ago I bought a V90 from -98 (around 80k miles). Great car. However it came without remotes for the keyless entry, so I bought one remote seperately.

Now I have tried to program the keyless entry so that the remote would communicate with the car. Here comes the problem. I do the five ignition switches on and off, on the fifth turn I leave it on, the red diod on top of my right front speaker starts to blink, and I press one of the buttons on the remote but nothing happens (the diod continues to blink for a few seconds).

So I took it to the Volvo dealer and service centre in Houston. A friendly guy called Jerry looked into the problem, when it did not work for him either he tested the remote in their workshop and confirmed that it works perfectly fine. His conclusion is that something is wrong in the car. Anybody that have any clue?

I am confused as the red diod is blinking, so that one is working. Could it be that the sensor in the car is broke? How to check this? Is this sensor located in the same place (i.e. on top of right front speaker)?

I am thankful for any ideas!
/David







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