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The lockup is accomplished by a passage opening and hydraulic pressure being applied to the clutch in the torque convertor.
I can only offer a suggestion as I am not familar with the volvo transmission yet, but the lockup is usually controlled by a solenoid inside the transmission. Some use valves in the valve body controlled by the governor.
The solenoid type is controlled by the computer which reads a number of items, such as engine load, mph, is brake applied, or coasting etc. The computer may have diagnostic codes for the transmission.
This is a hard one to nail down. What year is the 740?
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