My Volvo won't shift out of park. I have the ignition on and am pressing on the brake. The steering wheel is not locked. What is going on?

Sounds like there may be a problem with the linkage or the electronics inside the transmission. You will have to have this taken to a mechanic and diagnosed.

I had this problem once. There is a micro swith that interlocks the brake with the shifter. I wrote a post about it here: http://knol.google.com/k/john-robb/taking-volvo-out-of-park/3ou0v29v7gexj/2#

I just had this same problem fixed a couple of weeks ago. The calibration for the shifter was off. So the car didn't think it was in park. Therefore it wouldn't release the key, and then my battery went dead. Total parts and labor was $274.00

Just had my 98 V90 transmission park lock micro-switch replaced by Volvo dealer in Westport, CT. Ouch! They charged me $340; they insisted it was a 2 1/2 hour job (@$120 per hour), when a guide I found on how to do the job on the forum said it take 1 1/2 hours. I mentioned the steps were simple, as indicated in the guide. They were adamant. I would have done it myself, but I did not have a soldering gun. I figured, the job was so simple, how could it take more than 1 hour for a professional? Big mistake. They gouge you when they can.