o/d light blinking makes my truck shift better!

My trans has what i think may be the 2-3 shift flare but its so bad i dont know for sure. when i accelerate my car lurches forward between 2-3 once then you can tell its not completely in gear, then it does it again, even worse, and my RPMS just to about 3500 even if i was only at 2000. also, it wont shift into o/d. and when i floor it, it used to drop a gear at 3000 rpms but now it just tries to keep going in whatever gear its in, and i have NO power. this is all with the o/d light off

sometimes it randomly comes on, it has since i got the truck about two months ago. when the o/d light comes on, it does not have the shift problem and even goes into o/d. the only problem is you can really feel it shift hard like its being forced. last time i had the code read, it said it was p0741 the torque converter i believe. but that was awhile ago, it just started getting bad again after i went through a little river about a foot deep. had oil and trans fluid flushed immediately after thinking there was water in it but theres not. shop told me my trans would die in a year but im taking it to a specialist next week, i think it just needs a new valve body. anyone have any ideas?
also is there a thread on here the tells you everything that happens when the o/d light comes on? i know it goes into limp mode, but i dont know exactly what that intales.
thanks.

The EPC will increase the pressure in the transmission to compensate for any hydraulic pressure that it lost due to bad seals or gaskets. It's not good to continue driving it this way. The extra line pressure could eventually cause further damage.

so from that, i can maybe assume that the valve body seal could be blown along with a few solinoids? its getting fixed next week when i can have another car to get to and from work, ive probably driving about 4-5000 miles like this so far

I have a question that somewhat relates to this. Is it bad to drive with overdrive off?, I ask this because on an old truck that i use to have it didnt have it and many a time I find myself turning it off and driving like that.

Your transmission is a 5 speed, so even with the overdrive off you still have a 4th gear. 5th gear is virtual (computer controlled, and not a physical gear).

so its not a problem?

You will save a little gas if you leave it on.

BrooklynBay said:

Your transmission is a 5 speed, so even with the overdrive off you still have a 4th gear. 5th gear is virtual (computer controlled, and not a physical gear).

Click to expand...

I am not sure I understand that statement.
Brooklyn can you please clarify.

from Brians frankentranny, the 5R is stated as such:
http://www.explorerforum.com/forums/showthread.php?t=146953 ..... post #4

The 5th gear of the 5R is achieved by overdriving first gear (for an extra gear between 1st and 2nd),
which means that the overdrive band is applied in 2nd and 5th gears in the 5R
(4th gear from the A4 became 5th in the 5R, 3rd became 4th, 2nd became 3rd, and a new 2nd was born).
What this means is that the 5R has the same lowest and highest gear ratio as the A4, so it does not change the low end pulling power or the fuel efficiency and speed of the high gear ratio, they are the same.
((my note - I edited Brians statement, in part, above in RED, as I believe it was a typo))

The way I understand it - the 5Re,w,s have the same general function & shifting pattern.

One other item that I'll add(as I understand it)
The 5Re(what laxmankk11 has) has a bearing at the pump post which inserts into the OD drum(much like the center support and intermediate drum on all 5R's),
whereas the 5Rw & s do not(what zoso1030 has).
What this means is that in 4th - the drum is turning on a brass bushing instead of a bearing.
I would conclude that it would be better to be in OD when possible with a 5Rw & s.

when I get to it & update my 5Rw rebuild, I will touch more on this here:
http://www.explorerforum.com/forums/showthread.php?t=226071&highlight=5r55s&page=3

Overdrive is 4th gear on an A4LD, and 5th gear on a 5R55W.

after thinking about it - by "not a physical gear" you must mean on the the shift lever/cluster indicator....as OD is button actuated.

I was referrencing the actual gear in the trans.

sorry, just thinking out loud