Ground wire repaired, test drove....still no reverse. And it appears starts in 2nd gear(you can feel it shift into 3rd). So thinking we may need to re-adjust pnp and we may be good. We will see.

Ok so went to check brake switch, but found ground wire from ignition melted and in one place melted to a line that carries power. Praying this has been the issue all along.

Hubby noted car went into limp mode upon braking...could this be brake switch?

Ok test drove with TCM reinstalled, no reverse again and only 2nd/3rd gear.

Ok we pulled TCM and reverse worked. Cleaned contacts and reinstalled. Haven't test driven it yet to see what happens now. Any thoughts?

Ok I mistyped/fed wrong info. Didn't just drain and fill atf, we did a modified flush.
Solenoids are still checking out ok.
Will update as I complete more double checks.

Only code we get is the p0730.. There was a hose that was cracked and leaked oil on one of the coolant hoses, (these are the ones we replaced)we believe this is how oil got in..there was a residue on the overflow container. We took off and cleaned as best we could. It was black on the container, coo...

Okay sorry for this guys, but gonna be a long message. We bought 1995 Volvo 850 used(first Volvo ever). It was running great for about the first 4-5 months. Then it flipped into limp mode about a block away from home. We drove it home slowly. We figured obviously something was wrong but didnt know w...