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Hello Amy:
You have replies from two persons who know Volvos very well, Steve and Robert. Keep in touch with them and Brickboard because you will need them. To start, here at Brickboard click on Features menu, 700/900 FAQ, "Cooling System" and "Transmission: Automatic". Read also "Buying a Used 7xx/9xx" and "High Mileage Vehicles Preventive Maintenance". You will find you have probably bought a car with a ruptured automatic transmission fluid (ATF) coolant tank. This tank is inside the radiator. When this tank ruptures, coolant and ATF mix inside the cooling system and transmission. Symptoms are the milky ATF you describe and oily and discolored coolant in the reservoir. Coolant in the transmission will ruin it even without driving the car. I do not know why anyone let you buy a car in that condition. If you cannot or will not get back the money you paid for the car, put in a new radiator and THOROUGHLY flush that transmission right away with new ATF. You will find instructions in 700/900 FAQ. For parts like a radiator, get in touch with Nick Bauer at www.fcpgroton.com Explain the situation and trust him to send you right away the parts you need at the lowest prices I know about. Still, you will likely have to put in another transmission. In this case, flush the new transmission, not the old. Transmissions for your can can be found for not too much money. For a used transmission, you can get in touch with a trusted and well liked person here at Brickboard, Brian Leppin at www.usedvolvoparts.com For a remanufactured transmission, you can get in touch with Nick Bauer. Both Brian and Nick are competent, honest and well like persons many of us I have dealt with many times. Explain your situation and they will find what you need for a fair price. Ask here at Brickboard for a reputable shop that can either rebuild the transmission in your car or put in another, if need be. Best of luck and post how you do. You will get help.
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