HI KENNETH,I HAVE A 1995 850 T5-R AND IVE HAD THE SAME PROBLEM THAT YOU ARE HAVING IN THE MORNING WHEN IT IS COLD MY CAR WOULD DRIVE LIKE IT WAS IN THE WINTER MODE AND IT WOULD ALSO JUMP WHEN I WOULD PUT IT IN REVERSE,I ALSO HAD THE ARROW SIGNAL AND SPORT LIGHT BLINKING AT THE SAME TIME.THE ARROW SIGNAL LIGHT SHOULD ONLY COME ON WHEN YOU HAVE THE CAR IN LOW,HIGH OR WINTER GEARS.THIS HAS HAPPENED TO ME BEFORE ABOUT A MONTH AGO BUT I RESET THE BATTERY AND IT STARTED WORKING FINE UNTIL IT HAPPENED TO ME YESTERDAY AGAIN, SO I TOOK MY CAR IN TO VOLVO YESTERDAY AND A GUY THAT I KNOW PRITTY GOOD THERE TOLD ME HE DOESNT THINK ITS THE TRANSMISSION WHICH I THOUGHT IT WAS AND HE CHECKED IT OUT AND SAID IT NEEDS A GEAR POSITIONING SENSOR,SO I WAS LIKE OK SO HE CHANGED IT AND PUT A NEW ONE IN SO ITS RUNNING GOOD TODAY,BUT I DONT KNOW BECAUSE ITS ONLY BEEN A DAY,SO IM CROSSING MY FINGERS AND HOPE ITS NOT THE TRANSMISSION BECAUSE THEY TOLD ME IT WILL COST $2,800 TO PUT A NEW ONE IN.BUT ILL UPDATE YOU IF ANYTHING COMES UP.

-NICK-