2001 Explorer Sport O/D off Light

[MarkAW]

HELP! A few weeks ago I noticed shifting problems, although very slight. Car did not want to pick up 2nd gear as it should ...engine would rev up slightly before it would go into 2nd. And this would occur mostly after car set over night/was cold. Once it warmed up and ran for about 10-15 minutes shifting would improve...but NOT always. After a few weeks of this, the problem has gotten progressivly worse with shifting in to 2nd gear. There is no noise while this takes place. No banging, clanking or jerking at all. Tranny simply didn't want to pick up 2nd gear as it should - engine would slightly rev during the transition from 1st to 2nd.
Yesterday, as I drove down entrance ramp to get on the Interstate (around 55 MPH) the dreaded O/D Off light started to blink. I attempted to turn it off/make it stop blinking by pushing the button but no success. It remained blinking until I was able to pull over, put it in park and turn off the ignition. The light remained off after restarting the engine. I had no problem with it the rest of the day. However, I went through this very same dilemma again today... the slight shifting problem from 1st to 2nd AND the O/D Off light blinking.
I stopped in to a transmission shop later today and explained my situation to them. They said there was nothing they could do since it would cost around as much for them to fix the transmission as it would for me to have a new one put in. Cost -around $2,500. This being said without them even looking at the car!
Anyone else having the same kind of problem? Anyone have advice or suggestions? Getting frustrated.

 

[BrooklynBay]

Welcome to this forum! The blinking overdrive light is an indicator of a fault code which has to be read. Don't drive the car while the light is flashing. It could go into limp mode, and cause more damage. How many miles are on this transmission? This could be any number of things, such as a band, EPC solenoid, loose valve body bolts, gaskets, sprag (no engine braking), etc. Did you drop the pan? Check for broken band parts if you do. A temperature related problem makes me suspect the gaskets, and loose bolts.