I have been away and had not had a change to take hard look at the car until now. Apologies for taking so long and leave this subject dormant for so long. I would like to update all on few things I found out:
The right side green connector on top of the instrument (when you take it apart), was loose and was not latched in place.
That caused all kinds of erratic problems:
* Intermittent odometer function
* Battery light flickering, making it look like there is problem with alternator function or battery charging.
* Gas gauge not funtioning.
After I studied the volvo wiring diagrams of the instrument cluster I concluded it can only be an electrical connection issue.
So I took out the dash board and found that the green connector on the right was not latched in.
That solved all the above, no more complaint from the wife.
jmmxc