Volvo Repair: 1989 Volvo 760 turbo transmission, volvo 760, turbo hose

Question
I have a 1989 Volvo 760 turbo with automatic transmission that runs great except:  recently put in gear (drive) and it would not shift past 2nd; rpm went up steadily and I saw black smoke coming out the rear.  I pulled over, pulled the gear lever back slightly toward second and it ran fine.  Now I'm careful to "jiggle" the lever back toward second and it seems to run fine shifting through all gears.  What's going on?  Have I done damage to the transmission (the black smoke that I saw)?

Answer
IT COULD BE THE SHIFT CABLE IS STICKING OR OUT OF ADJUSTMENT.BLACK SMOKE SOUNDS MORE LIKE A RICH RUNNING ENGINE WHICH COULD HAVE BEEN FROM THE HIGHER RPMS NOT REALLY A PROBLEM.THERE COULD ALSO BE A PROBLEM IN A TURBO HOSE EITHER A HOLE OR ONE THAT IS WEAK AND COLLAPSES UNDER HIGH RPMS.