Have '87 240 DL Wagon w/ auto trans/180K miles
Here's what my problem is:

When driving it goes from 1st gear to 2nd no problem but will not shift into 3rd unless I back off the gas. At 45mph it still hasn't shifted. In 3rd gear if I give it gas it will kick back down to 2nd for more power I assume. Unless i'm going down hill sometimes. On the Interstate sometimes it will go fine but other times when I go up a steep grade it will lose power, shift down and I go from 65mph to 50.

Also the OD button on the shifter does not work. I hear it click in console and the arrow lights up on the dash but does not operate. Should I hear a click by the tranny also. The case of the solenoid by the tranny looks to have a crack.

I don't think this is probelm with power loss since it hasn't worked in awhile and power loss is new problem.

Tonite I removed the tranny pan and replaced the filter and gasket. The pan had alot of sludge and there were metal filings on the magnet and some in the filter which I replaced. The fluid itself was very dark. I just did this procedure last June. The kick down cable was about frozen so I put 3in1 oil down the sheath and got it back working normal.

Is there something I can do here or any advice? Since I just got laid off my job I'm hoping this an easy fix but I'm prepared for the worst. thank you for anything.
John