2001 S40 Very hard shift into Reverse & sluggish in Drive

[alschnertz]

What do you think about the P0600 code?
A friend suggested that that may point toward a CEM malfunction.
Are there diagnosis tests available for the CEM?

By the way, I erased the P0600 code this afternoon and then took the car for a ride.
It remained in limp mode and it took about 4 miles for the CEL to illuminate. Again with a P0600 code.
Does limp mode feel like the brakes are dragging?

[difflock54]

Yes, I would liken 'limp mode' to driving around with the hand brake on.
Makes for quite sluggish acceleration and even over revving from standing starts.
Your scan gauge may not be able to detect more specific Volvo fault codes that may be pending also.
Perhaps you know someone with a Vida/Dice or failing that a check by your nearest Volvo dealership's workshop may give more accurate clues.
jimmy57's initial response above could hold the answers if it is not ATF related.

[alschnertz]

Fast forward 2 months and we have SUCCESS!

It all went back to the no communication (P0600) problem. But an unlikely culprit.

I ended up sending the car to the dealer for an evaluation as a last resort.
Picked it up last weekend and have put about 160 miles since. It's excellent and just like it's supposed to be.

The problem?
How about the power and communication leads that go into the TCM were pulled out within the TCM connector just far enough that they weren't making contact!
I'm not sure how that could have been other than like that since the car came from the factory.
Myself, a few other Volvo friends, the guys from Re-Volv and even the Volvo tech had that connector on and off the TCM multiple times and never noticed anything amiss. The connector is large and has quite a few wires going into it. They're also harnessed together so they all move as one. Damn near impossible to see.

Regardless, it seems to be working now.
I'm glad to keep this thing on the road.