I have an 04 Ranger I just bought cheap ($5900) because the tranny will not go into overdrive. It has 130,000 miles and is very clean. 3.0 2wd Super cab. 5r44e transmission. The OD light blinks if you drive on the freeway for more that 5 minutes. Fluid looks clean and is at the proper level. I can get a rebuilt sent to me for about $900 which was my original plan until I happened upon this site

http://www.trannytools.com/parts/parts/37947-TL33.htm

They sell special tools and kits for fixing transmissions. They describe a problem and solution as follows.
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<!-- InstanceBeginEditable name="PDF" -->The coast clutch valve functions differently in 4R44E/55E units and 5R44E/55 units. The valve is the same but the porting used in their different separator plates makes the difference and will create different complaints as a result of valve or bore wear. In the 4R units, this valve is needed to get proper overdrive servo apply and bring on coast clutch. In the 5R units, the valve is needed to vent overdrive servo release oil and to bring on the coast clutch. Engine braking or loss of coast clutch are common complaints in either unit. Complaints of loss of 4th gear in a 4R or loss of 2nd or 5th gear in a 5R are associated with this valve. The Sonnax 37947-33K Oversized Coast Clutch Valve Kit and tooling salvages the valve body and restores proper coast clutch function in either style unit.

It costs $175 for a reamer jig and new valve plunger. I feel confident I could perform this service but I do not feel confident that this is the problem with my trans. I am trying to save $ but I think this fix is not nessacarily the right way to do that. I called about used trannys and Rancho Cordova wreching yard wanted $1000 for a 20,000 mile used trans before shipping. I see Pheonix transmissions has them for $725 but I have heard horror stories about cheap rebuilt trannys and poor workmanship. Any advice.
Nick<!-- #EndEditable -->

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FYI ford had a problem with the fluids in the trany not having proper additives this was probably the cause.

 

Yeah I saw that TBI. I figure the fluid on this tranny has been changed recently because it is nice and cleen looking on the dip stick.