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First thing to check is the OD solenoid. Mounted on the tranny, driver side, wire cable attached. Sounds like your switch & wiring are OK since light goes ON/OFF. There is a bypass plate available that sets the OD to permanently ON. If all you do is general driving, no heavy hauling or towing, you may be OK considering that option.
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1999 E320 1994 F150 1989 560 SL 1986 560 SL (deceased) 1988 300 TE (departed) 1994 945T (daughter's) 1988 244DL (fallow) 1986 242Ti (fallow) 1968 GT500KR (under restoration)
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