Transmission warning light -- you're tranny has now gone into
"limp-home" mode and gear changes are now on that basis. Essentially,
you've just lost first gear.

Get the car into the shop asap and get the tranny checked out. This is
a general warning that the computer has found a fault with the
transmission. Can range from a very simple item to a major issue.

The shop will pull the tranny codes and give you an estimate.

Like the Rolls Royce, Volvo's need the occassional adjustment. Looks
like your wallet is about to be adjusted....

He he he...

claire...the arrow just indicates a "towing gear" feature most volvos
have...it is just one gear down from drive...used in the event you are
going down a long hill, say at 70mph...you take your foot off the gas
and you want to slow down a bit more w/out using the brakes....you can
depress this button (usually on the side or somewhere near the button
you press to go into drive from park)...it is a little
button...sometimes a bit hidden...anyway, you press this button and the
tranny will slip into a bit lower gear...and start to slow down...the
arrow will be lit, indicating this gear is selected...when you hit the
button again, it should go off, and the tranny is back to
"normal"....simetimes the switch or button gets stuck,,,just work it a
few times...it may go back to normal...