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My 96 850 has this problem. Took it to the dealer, pulled the codes from the computer - right rear brake showing problems. They cleaned the sensor on that brake, and as I was driving it home, the light came on again.
Had the dealer look at it again today as I was getting new front rotors / pads. They want an excess of $750 CDN for a new abs/tracs "brain".
I know abs is a very important safety feature, but thats a big price tag for something that I deem Volvo SHOULD have recalled, since it is such a vital part. (As it is obvious this is a problem with the 850 series).
I've heard there is a solution of new wiring or something, but the dealer mentioned nothing about that. I've also heard someone resoldering the connections to the abs unit.
Just my story..
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