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Dear jjb,
Good p.m. The idle problem is almost certainly related to the Idle Air Control Valve (under the intake manifold). It needs to be cleaned. See the FAQs above, under FEATURES, for how to do this. If you are handy and have basic tools, you can do this.
The "overdrive" arrow is likely the result of a failed relay. It is likely located behind the front center console ashtray. To get at it, remove the ashtray (life up on the release bar). Remove the storage tray above the ashtray (plastic bezel around lighter pops off when pried gently on the right side). Two screws loosen the storage tray. Remove electrical connectors to the lighter and the light bar. Overdrive relay is in second row, on the right (passenger) side. It is marked VOLVO 3523804. You can get a replacement for a few $$ at a salvage yard. If that doesn't cure the problem, then the problem is in the wiring and/or the overdrive solenoid itself. Usually, a replacement relay does the job.
You need to find an independent Volvo Master Technician. The average garage does not see enough Volvos to get really expert in their repair.
Hope this helps.
Yours faithfully,
spook
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