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I'm diagnosing a similar problem as we speak. In the mean time, I park my car in neutral and set the emergency brake. Art Benstein's "cleanflametrap" site has some suggestions to follow. As I understand this, the last resort is to change out the shift lock release solenoid. Best to check if you have brake lights first, follow Art's diagnosis of power to the solenoid. It's doubtful you have a fuse outage since other things in addition to brake lights would be affected. You have a relay located in the center console near the left passenger knee (it's a silver metal cube) but this is rarely the problem. I wouldn't suspect the brake switch near the brake pedal either. The shift lever cover can be easily removed. Check to see that the pin on the shift lever is engaged in the neutral safety switch wiper lever. Make sure the wiper lever is matched in NEUTRAL to the mark on the neutral safety switch. Adjust the NSS as necessary. Remove the neutral safety switch. Pull back back the metal plate crimps and open the switch. Clean up the switch contact surfaces, even pop off the wiper lever and clean its contact surface. You didn't say you have a lot of wobble in the shift lever, so the shift link bushings are probably okay. They are reached from under the chassis with the car jacked up and placed on jack stands. I think there is a wire connection between relay and the ignition switch that should also be inspected. Off the top of my head, these are possible sources of concern.
For the fun of Volvos,
Mike
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'83 245 GLT, '92 245DL, '90 760 GLT
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