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This is probably caused by a broken button for the shifter knob. If you put the car in park take notice whether the button popped all the way back out or not. If not you it need replacing but you can make it work temporarily by hitting the shift knob with your hand. Hit the top of it and the button should pop out.
There is a cable that connects your gearshift to the ignition switch, when this cable stretches, it does not allow the gearshift assembly to move when you have the key turned. Removed the assembly around the gear shift assembly and inspect this cable. Removed the cable and manually actuate the lever. See if this fixes the problem as it is common in the S70/C70/V70s that are pre 2000
There is unfortunately no "trick" for this. You will need the service light reset tool. On some other Volvo models it was possible to reset the light by holding down the reset button for the trip meter and turning the key to position II - keep holding the reset button down for about 30 seconds.
i think (but dont hold me to it!) that the volvo keys have achip that only your car will open with so you might need a new key m8 a volvo dealership will program a new key but a an second hand one cant be re-programed to your car, sorry!!