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This ABS problem is widespread on the 850. Typically it is the CU, but at times can also be an ignition switch problem. Try wiggling your key around and see if it goes out. If it doesn't it probably is you CU and will run you about $500 to replace.
I highly suggest you report this problem to the National Highway Traffic Safety Administration, www.NHTSA.org. Volvo outright lied to me and said they are not aware of these problems whatsoever. My dealer replaces 5 a week at least and based on the posts on this board, and other places, this is a very common problem and a safety issue to boot.
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