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shift up v40 2003 S40-V40

I have 2003 V40. Runs well, little things like headlight plugs crumbling, back brakes replaced. Now the trans. problems though, or sensors connected to same. The shift up light goes on without my being out of Drive. Only happens from start, doesn't go on halfway through a trip. If I am actual in the wrong gear (sunglasses make it hard to see red indicator) when I shift to Drive the car won't start at first gear, so it feels like I'm starting in 2nd or 3rd: no power. Sometimes I have to turn off car and start a number of times before the shift up light is off and 1st gear is accessible. Car runs great 49 times out of 50. Is this a big trans. problem or a sensor problem? Engine light has been on for last 40 thousand k's and Volvo mechanics say nothing is wrong with engine






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