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If you truly want to do a "DIY" fix here you will probably need the wiring diagram and alarm system manual for your car. Follow the link in the 700/900 FAQ for manuals to locate the current info on the genuine Volvo manual source.
You might get lucky and find that the remote module is just unplugged under the dash. Or maybe the replacement harness is not the correct one and it can't be plugged in? Does the alarm set as indicated by blinking of the red LED on the right speaker case when you lock the car with the key? If not your problems are deeper that just the remote.
In any case, the way the remote system works is that the car's receiver module learns the code from the remote when you follow the procedure you just described. I believe it can learn up to 4 remotes at the same time.
Keep posting!
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'96 965 with 16' wheels at 101K. Had '85 745 Turbo Diesel for 200K.
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