My 86 wagon (M46/od w/217k miles) is also doing the same thing, and has been for several months. Adjustment of the cable helps for a week or so of city driving. My local Volvo "specialist" shop wants to put in a clutch. I think the clutch is fine, just cannot keep adjustment for any time at all. The previous explanation of a worn/bent fork would make sense if the fork bends more with each use. With that scenario, it would have bent enough to be a pretzle by now(or broken). I suspected the (one year old)cable was stretching, but again, it would have to be about ten feet long by now. I am about resigned to pulling the trans just to see what gives. Any more specific info would be appreciated.

ps This is my families' fifth 240. Both my daughters had 240s as their first cars, one car lost to a total, with no injury to my oldest, and otherwise, I could not be happier with any/all of them. Besides, I don't get many speeding tickets this way...dan in Colorado Springs