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Not likely, but could be that it just needs a transmission mount.. might not be getting all the way into 4th because the shifter is in conflict with the hole in the tunnel. Not likely, but it could explain both the popping out, as well as the OD not working if it isn't going in far enough to trip the switch.
Good luck with it!
Cold down there recently? 18 below at my place this morning... not a prayer of getting any Volvos going. I'll blame it on carbs even though I know it ain't their fault. Need to get me about 30 foot long jumper cables so I can get jumpstarts from the house batteries...
-Matt
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