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I have the same or similar problem with my car. I'm sure if the seller hadn't told us what to do to fix it hy husband and I would have gone crazy by now. (It was an Ebay purchase - risky, but not too bad so far.)
When I turn the key to start the car, sometimes it gets turned "too far" - in that case, the dash lights don't come on, the headlights don't come on (the daytime running lights do), some of the rear lights don't work (brake lights do), the seat belt indicator lamps/signals above the rear view mirror under the map lights don't stay lit temporarily after start, the turn signals don't work, and the cruise control doesn't work.
The fix is really, really simple though - just turn back on the key a smidge - until you see the seat belt indicator lamps light up (easiest visual for me in the day - at night it's obvious that all is okay again because the dash lights come on). Sometimes I'll push on the turn signal lever just to get that visual instead - either way works.
At night it's never a problem since I need my lights and I notice if the key is turned too far, but when I leave for work in the morning it's light out, and often times I will be 10+ minutes from home and not realize the key is turned too far until I try to set the cruise - fortunately it's in a rural area and I rarely encounter other cars the first part of my drive, so no turn signals aren't a huge deal.
According to the questionable small dealership where we got the car (through an eBay auction, lol) this is a "common" problem with volvos - although I've never read about it on any of the forums I've been frequenting recently.
Whether a new part like the previous poster installed would fix my problem, I don't know. Since I know how to correct it each time I just do that - it's free, LOL. Worth trying with your car at least.
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