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How is your Volvo to Ford shift linkage handled? Your description of the issues could all be attributed to the linkage.
I found that the Volvo shift arm is a couple inches longer than the Ford transmission shift arm. That means that the Volvo movement is levered up by about 25% making the position indicator way off. I addressed that by shortening the Volvo arm to the same throw as the Ford arm from 1st to Park. Using the original Volvo linkage, which is adjustable, gave me the ability to tune the PRND21 indicator correctly.
This is described better with pictures here: http://forums.turbobricks.com/showthread.php?t=250597
Being able to start the car in other than Park or Neutral is dangerous. That's why the start interlock.
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