Bill,
You might do well to try a different weight oil. I tried four different fluids before I found what worked best in my tranny. (stock, Valvoline Synthetic Gear Oil, Redline MTL and lastly Redline MT-90.) Of the four of them, the only one that was truly BAD was the Valvoline. After switching it out, I found out that it was really formulated for clutch-type LSDs and not for transmissions.
MTL yielded shift performance that was, to my perception, identical to the stock Volvo fluid. The MT-90 is slightly heavier than MTL. In theory, this should induce slightly more drag on the synchro bearings, allowing them to match speeds more quickly, thus leading to smoother shifts. Regardless of the validity of my theory of how all of this works, my experience with these various fluids tells me that MT-90 was best for *MY* transmission. Your tranny might benefit in the same manner.
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Jim Rothe, '99 S70 T5M, http://www.jimrothe.com/volvo/index.html
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