Change the transmission fluid

The problem is that you have waited too long. Changing it now can trigger a total failure by washing away the sludge that is helping seal the pressure that applies the clutches. You gotta do this sooner or not at all.

If you change it now you risk immediate and total failure. I would just leave it alone.

Excellent addition to this thread! Please feel free to help out whenever you are on the site :)

If transmission fluid is not flowing, then you caouls have a fault with the fluid pump. Get a pressure test done to confirm.

You should see if the Transmision Control Module is available for a software upgrade. You could have other sypmtoms aswell. Posted the following tech net.

A function called "Neutral Control" is present on all 2001 V70 and S60 cars. It is also present on 2002 non-turbo V70 and S60 cars built before January 2002. When the vehicle comes to a stop, the Transmission Control Module (TCM) activates Neutral Control. Even though the gear selector is in the Drive position, a Neutral condition is engaged hydraulically in the transmission. Neutral Control disengages when the brake pedal is released or the throttle is applied.

SYMPTOMS:

When the neutral control function is incorrect, there are three symptoms that can be felt in the car;

1. After coming to a complete stop and keeping the brakes applied, a "thump" can be felt in the car. It is felt about 2 seconds after coming to a stop.

2. When releasing the brake there is a harsh or double re-engagement of drive.

3. When idling in 'D' range with the brake applied, the engine speed oscillates (fluctuates).

In addition to these symptoms, some cars may set a DTC 012A or 012B in the TCM; which should be erased before downloading the software.

Having a message indicates there is a fault in the transmission system. Best thing to do is taking it to the dealer for diagnostics. They can check for codes and check for a possible software upgrade for the "transmission control module".".

Anytime you replace the transmission oil you should have the counter reset also. Not doing so can cause false codes to set. What I would have done first in your case is have the dealer complete a transmission control module software upgrade.