Volvo: my 97 t5 850 engine dies whenever i shift it to drive, trans fluid, bad smell

Question
hi ray. first of all would like to say you are really very good when it comes to volvos. anyways, i have a 1997 850 t5 with a mileage of 100,000km. the car starts but when i shift it it to reverse or drive, the engine stops. it starts again but same thing. the lambda warning is on in the dash. before, this thing happens but i could drive it but now, not anymore. please help me what to do. and also, the exhaust has a different smell. hoping for your answer soon so as i could enjoy driving again my t5, tnx

Answer
Boogie,
You will need to see what codes are stored. Maybe those will leed to the stalling. I did see one where the trans was bad and each time the car was shifted into reverse it stalled. Is the trans fluid all burnt and has a bad smell? Or is the engine running so poorly that just the drop in idle has caused it to stall?  That may also cause some unburnt fuel to enter the exhaust and smell bad. All the turbo hoses intact and tight, hole in intercooler?