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I have been following your post on Volvospeed.com and have been tempted to say this.
I don't think the problem with your ABS is wiring related, there is a chance it could be; however, statistically, about 95% of the ABS malfunctions in 96 850s has always resulted on a defective ABS control unit.
I have a 95 850, 96 850 and a 98 V70 and wiring or ignition switch has not been an issue. Neither it has been with the 100+ ABS control units I have repaired and upgraded.
Here's more information on ABS issues.
Vitor's web page
Click on the ABS / TRACS Repair link.
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