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I have had the reoccuring "overdrive not engaging," "sometimes working,sometimes not" issue in my 740.
I replaced the relay and then solenoid however i still had problems. Finally found the source of the issue. The plastic wiring connector from the overdrive solenoid(attached underneath the car at the rear of the transmission) was loose. It snapped in yet there is 2mm of play after the connector snaps in. It doesn't snap in snug.
I cleaned out the connector with contact cleaner. Waited for it to air dry. Then I used heat shrink tubing to keep the connector in the snug position after snapping in.
Its a fix, no more problems.
I read the 700faq and didn't see this as a possible diagnosis. I think it should be the first thing checked AFTER the relay turns out to be functioning properly. its a 10 minute fix w/o any headache.
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