F 250 Power Stroke engine. Transmission has been shifting from 1st to 2nd alittle hard & has resently gotten worse. Also shifts hard from 3rd to OD. & when trans shifts down, it's not smooth either. Also the off light on the overdrive button on the shift leaver is flashing with light on & off. Any ideal what is going on with this transmission. Checked fluid & was alittle low & filled up & no differance.

 

Trans is in limp mode . Speed sensor (VSS)on the rear axle may need replacing ,or the wiring leading to it may be broken ..There will be code stored in the PCM also ,,,

 

There's a glitch in the computer on these F250's that causes that frequently. I have a 96, happened to me and I was flippin out thinking major problems.
The Ford dealers instantly knew about this when I brought it in. It was like 20 bucks for them to go in and delete a bad file or whatever they do, and the problem has been gone ever since.
Mention this to the mechanic if you bring it somewhere. They should check that first.

 

Welcome to probably the beginning of the end of your current E4OD...
Check this link, it's a discussion over the same thing last week. If you only choose one person's advice to follow the pick Mark but you can kind of mix and match to see what works out for you. Ultimately, get the codes checked and start saving money.