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Transmission Dissapointment 850 1994

The automatic transmission in our 94 850 Turbo (130,000 miles) "sticks" in first gear when cold. We have to shift it to neutral then back to drive in order to make it shift. The transmission works perfectly when the temp gets to normal. The check engine light occasionally the "up" arrow come on. We finally got a code at the dealer shop where they told us that the transmission is "on its way out". This is very distrubing because I am a maintenance nut and followed Volvo's reccomendations to the letter (did not change the fluid). The fluid level is ok, but it is badly oxidized. The dealer said a fluid change would do more harm than good. Any advice would be greatly appreciated.






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