OK. I accept that I have to do a clutch job on the '89 245. It's been slipping, etc. But the shifter is also a problem. It's very difficult to put it into first and reverse.
Is the shifter problem related? Will it be solved when I get the new clutch kit in?
Or are there other adustments to make?
There's a new cable going in as well.

Before you write-off your clutch, get under the car and turn the adjuster nut one way. See if it improves/fixes slipping. If not turn the nut the other way and see if that improves things. You may have a bit more clutch face left as Volvo clutches can last over 200k miles.
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1980 245 Canadian B21A with SU carb and M46 trans

my experience has been that trouble getting into first and reverse does indicate clutch adjustment problems. in other words the clutch needs to be adjusted to disengage more completely. but if the clutch is slipping too, then maybe it is worn out.
you might also look hard at the pressure plate for signs of wear when everything is taken apart. i would replace it, but maybe that's being too conservative.
definitely replace the throwout bearing. check the throwout bearing lever closely. they bend and break. check the little assembly that hold the throwout lever in place inside the bell housing - that's a real wear point. i would replace it also.
if you're going to keep the car you could take off the flywheel and replace the rear main seal on the motor. be careful to get the new seal seated uniformly.

It's probably your "reverse detent" plate. It's the thing that prevents you from going into Reverse without pulling up on the ring. If you adjust it to the left a little, you'll probably see some improvement.

I believe there is some info on this in the 700/900 FAQ, in fact everything that I just mentioned above (aside from the Redline MTL fluid).

http://www.brickboard.com/FAQ/700-900/TransmissionManual.htm#M47ShiftLinkageCausesHardShift

Bean
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'80 242GT 93k, '94 945T 139k, '89 765T 68k (new '94 B230FT)