Adam- welcome to the world of unexplained volvo problems!!! Myself and many other Bricksters on the 850 board are experiencing the same problem. Remember, your car is the same as 96-2000MY 850/S/V70s(which is the same as my 850 T5). Anyway, your ABS control unit is probably bad. Will HAVE to replace it. You will need to let dealer pull the codes and it will probably say "faulty wheel sensors" or the like. Since you got the warranty, I hope it covers that part. My car is out of warranty, so I have to cough up the approx. $600(parts & labor). Alot of us think Volvo should offer a recall on this unit(it fails for no reason), but so far I'm still wishing.
Hope this helps, Billy D in NY.
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