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The OD light flashes when the computer detects a problem in the transmission. If your fluid isn't low, the best thing to do is to get it to a Ford or Mercury dealer for diagnosis. If you decide not to get it fixed there, they will charge you for the diagnosis. If you get it fixed there, they will waive the diagnosis fee and give you a warranty when it's done. You are right that the truck is not in OD anymore. Once the problem is detected, the computer forces the transmission into degraded mode which causes hard shifting and a high revving engine. This mode is NOT designed for long term use and you should get the problem fixed ASAP before MAJOR damge results from driving it in this condition.

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Q: Your 2001 Mountaineers overdrive button is blinking Happened all of a sudden no previous indicators When driving it feels like it is not in overdrive Someone told you that there is a sensor?
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