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Overdrive Solenoid workarounds... and a nasty rear-wheel grinding noise? 200 1983

Howdy -- I'm the proud seventh owner of a not-so-proud 1983 240 (technically a 244 I believe).

Two challenges:

1. Overdrive Solenoid: It's dead, I think. I've checked the relay, wiring, etc -- and I can run power directly to the solenoid lead-in (w car off), and nothing clicks.
(A) This means it's dead, right?
(B) Can one mechanically lock the car into OD, by banging on / otherwise mutilating the solenoid?
(C) Any suggestions on how much it should cost (in Northern CA) to get a mechanic to replace the solenoid?


2. When stopping, left rear quarter gives out NASTY noise of metal grating on metal. Sounds almost like muffler dragging (isn't, I checked). Suspect this is the "your brake pad is worn out" warning...
(A) Yes? Other ideas?
(B) Suggested cheapest replacement facility? (Midas, etc)
(C) Approx cost?

Basically, I love my car, but it has 160k miles / 20 years / 6 owners, and I bought it for $1k. I drive it back & forth to work 15 min each way, and sometimes a 60min trip to the city on weekends -- so don't want to spend $$!

Thanks

- KE






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