I have driven my car with the light on as you discribe-pnp switch was getting ready to go on the blinck-drove around a day or so and the computer reset the code and the light went out on it's own. Normaly when this switch goes it will
leave the tranny starting out in third gear on take off-if yours is going through the gears the way it should the computer may reset the light on it's own. You will probally need a switch before long though if it's giving you trouble now. I just hate to hear stories about rip off dealers like the one you discribed, no difference between a dealer like this and some damn theif ripping off ladies handbags-except the dealer can do it legally. Try to find an indy somewhere who knows Volvo's or go back to the dealer and ask why they charge 5oo dollars that other dealers charge 300 for.
Poolman