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My newest is a 88, so your newer model my have differences.
The amber arrow means that the o/d is inhibited from automatically engaging.
With the arrow off, o/d should engage on level road at about 40 to 45 mph. I can tell be the drop in rpm's. If in traffic and can't look down at the dash, I push the button and feel for the engine change to determine if o/d was in or out.
Overdrive should be not used under load at 40 to 50mph, like climbing a hill or overpass, or needing extra acceleration. Also, not when towing anything. I find using the button to kick down to 3rd gear is handy boost without flooring the accelerator pedal.
If the 90 specs match the 88, the rear axle is type 1030 and the ratio is 3.73 for the AW70 automatic transmission.
You can get books for your car. Shop manuals are the Haynes and the Bentley, and Volvo Service manuals are at http://www.volvotechinfo.com/index.asp . I think yo ucan get an owner's manual, too. Of the Volvo books, get the Wiring Diagrams book and the Specifications book, at minimum. And be sure to check the BB archives and the 700/900FAQ's section too.
Good Luck,
Bob
:>)
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