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Replace the burned out bulb
Volvo uses the term position light for what we here in America commonly call a parking light. If you turn your lights on and walk around your car you will notice you have a bulb burnt out.
It means that one of the position "parking" lights is burned out. It is usually one of the four bulbs in the rear tail light assembly. NOTE: before replacing the bulb, give the bulb housing a light rap with your knuckle. Sometimes the bulb just becomes loose in its mount.
under the dash in the center console, it's big and red.
Its behind the instrument cluster. Look at a new one online to correctly identify.
On my 2004 XC90 the lens covering the position light swings open left to right. The bulb is easily accessible.
This usually means there is a bulb out, there is a bulb failing or there is a bulb that is not seated properly. Check the bulbs in the tail lights especially (there are a lot of them and you may not notice if one is out).
If you mean the bulb failure light; The bulb failure detector compares the current drawn by the left bulb to the right bulb and lights the bulb failure light if the currents are not equal. I have never seen a bad one. The usual reason the light is still lit after the bad bulb is changed is because the new bulb is not an exact match or the contacts are corroded. Try two new bulbs. Good Luck
Position light bulbs can be either headlamp or parking lamp/marker lamp bulbs Have a look on the centre console. Its probably one of the lights around either the left or right temperature dial on the air conditioner. It only comes on when you turn the headlights on and have the illumination come on on the the dash. Mine came on today but error message only showed when I turned on the headlights. The above statement is incorrect. NONE of the dash light bulbs will turn on the bulb failure message. Note they did say the the message came on when the headlights were turned on. This is an indication that one of the position bulbs or a headlight bulb has failed. I have 30 plus years as a Volvo factory trained technician.
Bulb warning failure relay, a big round and red relay, back the ashtray
The front turn signal bulb on a 1993 Volvo 850 is replaced by prying out the lenses cover. The bulb can then be disconnected, unscrewed, and a new bulb put in its place.
Here is an answer I found. Hope it helps. My Volvo mechanic said it was $5.66 for the bulb(s) and .2 hours for labor. http://answers.yahoo.com/question/index?qid=20090418151932AApJkCv