The solenoid is located on the front of the shift assembly under a plastic retaining clip. I was able to pull this clip off with a bit of effort it clicks in on both ends. I also removed the shift cable to provide better access to the solenoid. Be careful not to loose the little retaining clip on the shift cable, it will fly if you are not careful, as mine did.

This is the solenoid engaged (locks the car in park).

This is the solenoid disengaged (unlocks the shift handle) when the car is on and the brake is engaged.
https://sphotos-a.xx.fbcdn.net/hphotos- ... 6245_n.jpg
I pulled the solenoid up for better access, this is limited by the length of the wires attached to the bottom of the solenoid that power it.

I pulled the pin out and cleaned it with some WD-40 as well as spraying some in the solenoid where the pin resides. I placed the pin in and worked the pin back and forth until it moved much more freely.

After some work the pin moved freely and I installed it back in the shift assembly. I also sprayed a little WD-40 where the pin engages with the shift lever. The solenoid now works and I will see how long this fix works since my car does not have the manual override release that older Volvo cars have.






