Good news
Nothing wrong with gearbox - panic over :-)
A stone had wedged itself between the brake disc and dust cover.
Volvo is a great car, but it has cost a lot of money to fix in two years.
Thanks for your input.
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Current Volvo:
XC90 D5 2014 120K miles. Running lovely on clean green Biodiesel 
Previous volvo:
V70 D5 2009 - T5 convertible - V40 1.8 - 343GL - the one with the elastic band transmission!
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