[Motorhate]

OK, symptoms of the problem I was having this evening:

2008 Volvo XC70 D5 AWD

1. Key fob in dash
2. Foot on brake
3. Press ignition button
4. Nothing

Error message saying put gearstick in PARK (even though it was in PARK)
Gear knob stuck in PARK - cannot be moved into NEUTRAL
Key fob can't be removed due to error message

Solution:

1. Open bonnet / hood
2. Disconnect EARTH terminal from battery
3. Wait approx 30 seconds (you may hear a bleep)
4. Reconnect EARTH terminal
5. Start car

This worked for me tonight, suggesting it was electrical problem and a reset of the system fixed it. I had a problem before where the stereo wouldn't work, it just stopped for no reason at all. Disconnecting the EARTH reset something and the stereo started working again. It's been working OK for a year so far now.

If the key fob / gear issue re-occurs I'll let you know but for now, it appears to be fixed.