Yes, probably a developing problem but maybe not, even so, it's not that bad of a fix...at about 20-30 bucks for the tranny shift micro swtich under your gear shift console, and 30-45 minutes of labor. www.fcpgroton.com has this I believe or I see it on eBay all the time, like here: http://cgi.ebay.com/ebaymotors/Tranny-Shift-Micro-Switch-Volvo-850-S70-V70-C70-V70XC_W0QQcmdZViewItemQQcategoryZ33736QQitemZ8012868214QQrdZ1QQsspagenameZWD1V
Here's the how-to with pictures: http://www.volvospeed.com/Repair/Microswitch.php
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon. My cars have been running so well lately they've got me worried.
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