Starter or "Bendix" ??

So my starter (or ignition) is making this God-awful scraping noise when I start my 94
Volvo 960 SW...my ABS light is on and I have a flashing UP arrow...also, the get-up and
go kinda got up & went (but not that noticeable except going from park to first...all these
things started happening at the same time, on the same day. My neighbor had a visitor
the other day...an old man who knows a thing or two about cars...he heheard me start it,
and told my neighbor it was either a loose starter or my "bendix"...just wonderin' how
much of a pain in the butt (and wallet) THIS fix will be (it's always somethin!) and what
the heck is a bendix anyway? Thanks guys!