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'Performance Reduced', Car will only go 10 mph. V70-XC70

I was driving down the street when I heard a "clunk" - my 2001 V70 slowed down to about 10 mph, wouldn't shift up, shook like mad and the error message read "Performance Reduced." Made it home to unload the four kids I had, and had the car towed to the dealer. He claims to have driven it the next day with no problem but will hook it up to the computer to see what was stored. I do not want to get back in this car and risk being caught some distance from the house with this happening again. I had noticed in the days before that the car seemed to "chug" at low speeds - like the gears weren't shifting properly. Any ideas?






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