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keyless entry not working 850 1997

Greetings,
We recently bought a '97 model 854. The car came with two remote key transmitters, but I can't get them to work. I have replaced the battery in the key fob, and peformed the programming steps (key to pos 2, 5 times, etc..) and they still don't work. I read on another Volvo site about the receivers going bad over time. Is this a common problem? Where is the receiver located?
The car has a factory installed alarm, which works, but the remote key fob does not. When I do the programming steps, the alarm LED blinks like it is waiting on a signal, but never appears to receive one. Is there any way to test the fob to see if it is even putting out a transmission (maybe hold near an AM radio and listen for interference???)
As for the factory alarm, the alarm buzzer (horn) is not very loud, and the volume/pitch changes after 4 or 5 seconds, to a lower and quieter sound. Any ideas to repair/replace the alarm horn?






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