You didn't specify whether it was gas or diesel. First thought that came to mind is that if it is drive-by-wire, there might be something wrong with the accelerator pedal assembly ( it's a big rheostat ); the next thing deals with whether it has traction control and one or more of the sensors is malfunctioning and sending a bad signal to cut the power back. But it's all guessing; you need to plug the old girl into VAG spec diagnostic tool and run a check.
Another thing, and it may seem kinda dumb, but make sure your floormat isn't in a wierd position that can limit pedal travel.
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Volvo WIA42 VED-12 / 335 hp / 1300 ft/lbs / 9 mpg
Big n' Boxy, Never met a Hill it Didn't Like
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