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The problem is a tiny little gear in the odometer assembly has broken some teeth. The speedometer will still indicate how fast you are going but, your miles won't count, right?? This is a very common 850 problem.
I just replaced mine myself a few weeks ago. Go to www.ipdusa.com (they are a very popular Volvo parts supply place), and click on "Volvo Products" and then click on "Interior Accessories" and scroll down to "Odometer repair kit". For $50 they sell you the little gear and a good DVD showing you how to do it. It takes about an hour with intermediate skill level of working on things mechanical. May the luck of the Irish be with you!:-)
P.S. A speedo repair shop will charge $150-$200 and you will have to ship the cluster to them.
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