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Squeaking Front-End on a '96 960 Volvo 900 1996

I recently bought a '96 960 Sedan and for the most part love it. However, I have several concerns about things that just started. First of all, the front-end steering/suspension "squeaks". The steering seems to be fine but when I turn the wheel either left or right squeaking occurs. Does anyone have a suggestion as to what this might be and how I could stop it. Note: It is NOT the brakes!!

Secondly, this car has a "Mode Selector" (3 buttons to the left of the gear lever). The top button is marked "W" for Winter/Wet Mode, the midle button is marked "S" for Sport Mode and the bottom button is marked "E" for Econonmy.
A red light appears at the top of each button to indicate which Mode the car is running in.

Today, after I shifted into Drive, the red light alternates between "E" and "W" and a flashing arrow appears on the dashboard. What does this indicate. Any suggestions on how to fix this will be apppreciated.






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