2001 Volvo V70 Transmission service required

That code you posted only means that the transmission control module has fault codes stored. You need to have the transmission control module scanned for trouble codes and post them on here to see what is going on? Unfortunately I do not believe Auto Zone is capable of scanning other control modules other then the engine control module. Also you have a function called "Neutral Control" and 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.

Note that Neutral Control is not active during the following;

Transmission in 'W' mode

Transmission in Geartronic mode

Gear selector in 'L' range (non-Geartronic shifter)

Operating with high AC demand (higher idle speed)

What I would recommend you do first is actually to take it in to your local Volvo dealership and see if there is a software update for the transmission control module and the engine control module. Both should be done together if they are available. Sometimes the transmission control module software update will take care of some general shift qualities but will also remove the "Nuetral Control" function. If you want to avoid going to the dealrship then you should look for an independent shop that specializes working on Volvo and can actually performe the software updates if they are available. If the software does not work, then further diagnosis will need to be done and if you can get the transmission control module codes, please post them on here. Good luck and keep me posted.

The software is a starting point. Once it is done, drive it like you normally would and see if that helps.