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My service light was doing the same thing, I had it serviced at Volvo for the 60K service, and they reset it at that time about two weeks ago it came back on at every start up and went out in a couple of miles, car was approachng 70K miles and service was again due.
Since i do not always have the car serviced by volvo except for major service intervals, i change the oil myself, i bought a scanner from www.obd-2.com that will reset BOTH the CHECK ENGINE and SERVICE lights. I do not think i am able to reset the service interval, but since i can now turn off the light- who cares.
Chek out www.OBD-2.com they offer software that will connect a laptop to the OBD port of your car, the price starts at $122.00, and it will easily pay for itself after a 2 or 3 oil changes (as compared to paying the dealer to change oil and reset the light).
If you are near Houston Texas email me and i will reset it for you.
Dan
1997 854 GLT Turbo
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