Transmission Issues

[Muskoka]

I was on the freeway yesterday morning running about 60mph and pulled up behind a transport who had just turned on his 4-ways. I pulled out to pass, but not knowing what was around him I did not kick-down, but really only tapped the accelerator during the lane change.
It was during that tap that the car clunked/jerked. It just felt (in my best NASCAR drawl) like somethin' broke. The transport had put on his 4-ways due to a major slow-down in the trafic about 1/2 mile ahead, which gave me time to look at the dash; 'Transmission Service - Urgent', and the engine light. Great.

My destination had an auto service centre near by, so I had them take a look. They could not read the codes, but did inform me that I had no 1st, 4th or reverse gears. They were able to let me know that 50-40LE and 50-42LE transmissions are known to exhibit a No Reverse, No 1st, No 4th condition before or after an overhaul, and the culprit may be the solenoid screens being installed upside down on reassembly after an overhaul blocking the solenoid feed to the shift solenoids and shift shift valves, or that the shift solenoids are not functioning mechanically.

I was able to limp it home to my dealer (I think the only thing that didn't pass me was people on bicycles - and even them only barely), where it sits now. They will not be able to look at it until tomorrow as I only managed to get it in shortly before they closed.

The dealer had the car all day today and at 3:30 finally told me....I need a new transmission at $4200 plus tax. The ensuing conversation went something like this:

Me: "What's wrong with the transmission that's currently in the car?"
Service Advisor: "Um, I'm not sure."
Me: "Yet I need a new one? Perhaps it would be a good idea to find out what's wrong with it before telling me I need to give you close to $5000 for a new one."
Service Advisor: "Um, I'll speak to the technician and call you back."

Realize I had mentioned the known solenoid issue when I brough the car in yesterday.

Two and a half hours later I called him again and was told that (curiously) they'll be looking at the solenoids on Monday, but to do so they'll need to drop the transmission. At the end of the day if it turns out that I do require a new transmission, so be it (though if that is the case I will be placing a call to Volvo to see if I can get any relief - the car's only over the waranteed limit by 6200 miles (10000 kms)), but don't just tell me a new transmission is required when you don't even know what's wrong with it........

[Muskoka]

Update:

What a waste of two days. After telling me on Friday that they'd be dropping the transmission and opening it up to see what is actually wrong with it today, the service advisor called me this morning to tell me...I need a new transmission. They are still basing this only on the codes, but have not done anything to see what's wrong with it.

I called a 20-year independent Volvo-only shop (I didn't take it there in the first place because they were closed by the timeI got back into the city last Thursday), who didn't have a replacement transmission in stock but rather referred me to the automatic transmission shop they use for re-builds. He also told me that he has never had a transmission rebuilt by this shop come back with a problem. The transmission shop went to the Volvo dealer, picked up my car, took it to their shop and quoted me $2600 for a full rebuild complete with new solenoids and upgraded valve bodies.

It'll be ready Wednesday.