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Things are getting a little more complicated with these new fangled cars and electronic everything.
With the reverse lights not operating, it is a clasic case of the PNP switch going south. The Park, Neutral position switch gets corrosion on it and then fails. When that happens, the tranny does not know where the shift lever is. "rowing" the shifter sometimes cleans the contacts in the PNP just enough to drive for a little longer, but it only puts off the inevitable.
You should be able to see the PNP when you pull the air cleaner off. It is not hard to replace, and Bay13 in volvospeed has a good write up.
Klaus
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1975 164 w/174,800mi (Sold) 1995 850T w/91,000mi, 1998 V70R w/129,000mi
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