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First, be sure that you have the proper amount of fluid in there. My M41 OD would not engage reliably when the gearbox "juice" was too low. Toping it off made it run perfectly.
You might have a problem with your 4th gear lockout switch (on the top of the case). If it is always engaged, then the switch may be stuck closed. These are $20.00+ so it might be worth changing just to be sure. Check the wiring on it if possible. It's a sort of series-type wiring and the switch breaks the current to the solenoid shutting off the OD. You might have some bare wires touching or something. Then again, your OD would always be on if that were the case.
Your engagement problems may also relate to the wiring at the solenoid These are just simple push-on spade connectors and they work loose over time.
You might have a problem with your OD relay. It is is faulty your OD will not engage or do so sporadically.
When you are sitting in the car, with the ignition turned on (but NOT running), and in 4th gear, do you hear a little "click" when you flip on the OD?? Confirm this before you do anything else.
Check that you get a click and rule out the wiring to engage the solenoid first. Check your fluid second, check the wiring to the switch and solenoid, and then worry about the 4th gear switch. My gut says your fluid is too low, but it could be any number of things.
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