Finally got around to fixing the problem originally described here:

http://www.brickboard.com/RWD/index.htm?id=1170692

I pulled a dead solenoid that had already been drilled out off a junkyard car, and took it to local Volvo independent place who put it on for me, and car has returned to satisfactory function, sans OD lockout.

Wasn't able to take the time to verify electrical failure vs. solenoid failure, though it was pretty clearly the latter. This is now a wife-mobile, so the loss of the downshift button isn't much.

Thanks for input guys - now about electric fan conversion...

Best,

Lanval