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These *could* be related. Here's a blurb from the ABS section of Volvospeed (read more at http://www.volvospeed.com/Volvospeed.htm and click Repairs/Maintenance):
"If the ignition switch is the problem, you may notice that the shifter is hard to get out of park, your headlights don’t work, the seat belt light stays on, your radio may cut out, the tach will read incorrectly and the ABS light is on. A simple way to check if the switch is your problem is to wiggle the switch forward just a bit and back a bit, not enough to cause the starter to engage or the engine to die. When the switch is your problem there will be no codes set and the light will come on and go off with no logic at all. You may start your car and be driving for a while and then the light will come on, stop for a quick stop and then when you start the car up again the light is off. The ignition key should not have tons of items hanging from it; one key fob is about all that should be on the key ring. If you can cause the light to come on and go off by moving the ignition key, replace the ignition switch (electrical side) by following the instructions at Bay13. Another indication that the ignition switch is the problem is that no codes will be stored in the ABS control module. If you have a 1993 to 1995 850 you can check for codes in the A-3 socket of the diagnostic connections by the washer fill cap. 1996 and up 850s and S/V/C 70 will have to have the codes read with a Volvo Scan Tool or equivalent."
Some other thoughts....
ABS
Quite possibly the control unit. Read through repair section at volvospeed.com. If it's the control unit, you can do the repair yourself. If it's ABS only, it should be cheaper than my ABS/TRACS controller ($350, located under the hood beneath the ABS block - a stupid place to put a PC board).
SHIFTLOCK
This is part of an interaction lockout mechanism that can be affected by a couple input sources (brake pedal microswitch is common, ignition switch, bad shifter, etc.). When this happened in my 945T, my service tech opened the shifter cover and cut away the restrainer...guess that's one way to solve the problem.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)
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