I used this procedure to reset my 2002 s40 services light (it should work for 2008 s40 also).
a) insert ignition key and turn it to the 1st click - no lights on bottom of the instrument panel should be light up
b) press and hold trip odometer reset button, and turn the ignition key to the 2nd click - the row of lights at the bottom of the instrument panel should come on
c) after about 5 secs the lights should go off except the Service reset light - it will blink
d) when the Service reset light has blinked for about 3 times - release the odometer reset button
e) the Service reset is complete
Note: This procedure cannot be used to reset Check Engine light
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