Agree that you may be having an electrical contact and/or grounding issue. Now that you have the codes, I would try a "reset". My '94 850T would have a similar problem once in a while. This may also work on your '98. If you turn the ignition on/off five times (without engine running... ju...

For any issue that is potentially due to the PNP, the first thing to check is the contact surfaces inside the PNP switch. You can do this by holding down the button and rowing the shifter back and forth smoothly and quickly through all positions. Like 20-25 times, P all the way down to 1 and back. ...

Hi! I'm hoping I can get some help with my transmission issue. The 3 buttons S, E and W are blinking like Christmas lights along with the shift arrow. The W button will not engage when pushed down, the S & E buttons will engage when pressed. My V70 will drag in first gear before shifting into 2n...