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I just did this last week. I followed the service manual's directions. I used Quaker State synthetic blend which was about $3 a quart at the local KMart, but I've used $6/quart Mobil One full synthetic in my other cars and either one is a good choice. I just thought I'd try the QS syn. blend this time. The capacity of the 850's tranny is 8.1 quarts. Use a fluid rated for Dexron IIE use. Either the QS syn blend or Mobil One ATF will fit this bill. You need 9 quarts to do a power flush, any more than that and you're just wasting new fluid. The capacity of the 850's tranny is only 8.1 quarts and there's no filter to change unless you've installed an inline filter like the Magnefine 3/8" filter. The LOWER hose attached to the radiator is the RETURN line. Don't remove the lines from the radiator at all. If you remove the battery and battery tray you can access the fitting to unbolt the RETURN line from the tranny, then point it down into a container and place the battery back in its normal position, but don't bolt the battery down yet you'll remove it again. When I did my tranny flush I also installed the Magnefine filter at the same time, in the middle of the return line. So rather than unbolt the return line from the tranny I simply cut it in the middle and attached a short length of 3/8" clear tubing (double ended brass barbed fittings available at Home Cheapo or Lowes....), and ran that down into the container so I could watch it and see when fresh clean fluid started coming out. But I promise you the LOWER line is the RETURN line. I had to remove the plastic cover that sits over the throttle cable and IAC, its a T-20 Torx screw that holds it on. Also the upper air inlet pipe needs to come out, its the one that connects from the intercooler to the throttle-body, it's pretty obvious which one you have to remove for clearance. Its an easy job. You can drain the tranny statically through the drain bolt (24mm) but you'll only get 4 quarts out, you still need to pump out the torque converter, that's the only reason you disconnect the return line. So put a pan big enough to catch 4 quarts of fluid under the tranny and remove the drain plug (its the 24mm plug at the lowest point on the tranny oriented horizontally...). Let the fluid that's in the pan drain out (go have a drink or something...), then replace the drain plug and refill the tranny with 4 quarts of new fluid. Disconnect the RETURN line and aim it in a container. Temporarilly place the battery back in its normal location and connect the positive then negative leads. Crank up the engine and let it pump till it won't pump any more, that's about all there is to it. Now replace the RETURN line (and recommended inline Magnefine filter...) and top off the tranny with the engine running and in neutral. Resecure the battery, intercooler pipe, throttle cable cover and you should be done. Unless you've got really tiny hands you'll have to have the throttle cable cover off to check the fluid level and/or add fluid. Check for leaks, hopefully there are none. That's about it. This is the procedure the factory shop manual says to use. Good luck.
Mike
'95 850T
Here's some pics:
http://www.forumpictureprocessor.com/pictureprocessor/images/VolvoTrannyFluid25K%20Edited.jpg
http://www.forumpictureprocessor.com/pictureprocessor/images/VolvoTrannyFilter%20Magnefine%2003.jpg
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