I own a 1998 V70 turbo with 200,000 + miles, drives like a dream. About three weeks ago the transmission arrow flashed on. It stayed on all that day. The next day the check engine light was on and the transmission light was off. The car seems to be driving just fine. I took it to the mechanic. I haven't found one I like yet but I don't really know enough about engines to go it alone.
he said I would need a new transmission: $1800. He said the light was a warning that the transmission would go in a few months. I borrowed a OBDII reader and checked the code. it was P0705: Transmission range sensor circuit malfunction. I figured I needed a new mechanic. I cleared the code and the light has stayed off for a few days now.
Just to be sure I checked the transmission fluid. The color looked o.k. but the level was hard to pin down. I don't get a clear line on the dipstick. The oil is splashed on the stick lightly but not with a clear level. Also there is oil much further up the stick than the max line. almost 3/4 of an inch past the line. This seems to be the same if the engine is hot or cold. I am wiping the dipstick down if you are wondering.
Anyone have any advice? It's like there is much too much oil in the transmission but that doesn't really make sense to me. Am I doing something wrong?

 

I assume you are checking the transmission fluid with a hot engine?
Allow a couple of minutes for the fluid to settle back.
You should firstly remove the trans' dipstick and wipe it with a clean cloth, then replace it.
Then remove the stick again and you should be able to get a good indication of the level (based on hot) when you check against the graduation markings.