Does your 94 have the service "junction box" located behind the right head light in the engine compartment? I know my 95 850 does, and it can be used to reset the service light as well as the check engine light, and read codes as well. IPD or volvospeed.com has the procedure.
I think 1996 and on stopped that box, and you need a plug in OBD2 thingy to reset the light, and a scanner to read codes and clear check engine.
Just because the check engine light is on does not mean the engine is about to detonate into a million pieces. It could be a loose gas cap, or a knock sensor, or many other things. It is important to track down the code, though. I would invest in the VOlvo pocket data booklet, which has the listings of all the 3 digit codes. Its about 15 bucks and very helpful.
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