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If you want your OD to engage to 4th gear, it must be powered. No power to solenoid, no 4th gear. Volvo did this ass-backwards if you ask me. When your button is pushed in and the little light in the dash is on, that means power has been taken away from the solenoid and it won't engage your overdrive. When the light is off, then power is going to the solenoid, enabling your OD to engage. The solenoid is normally powered and in the open position allowing transmission fluid to flow through it's internal valve to engage the OD. Get some power to the noid and you should get your OD back. If that doesn't work, then it might be the solenoid itself.
Good luck.
Carl
88 245 DL 97K
86 240 GL 207K
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