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The key to your problem is what is the solenoid doing at those times the OD disengages.
Since the OD disengages when you give it gas, then reingages on release, the piston seals may be the problem but there are other items that can cause this unique set of symptoms.
What happens to the dash light is your key to finding the cause.
If the dash light goes out then comes back on, look at the wiring to the 4th gear switch and the 4th gear switch itself. As the engine rocks as the engine accelerates, something is causing the 4th gear switch to tell the relay to disengage the OD.
If the light stays on as the OD disengages then engages, check the wiring to the solenoid and the solenoid ground. Also check any ground strap between the motor and the body.
If any of the above electrical fixes cures the problem, check your motor mounts for failure or near failure.
I seem to remember somewhere about the fluid filled engine mounts on the 700 series having trouble.
Duane
ODGuru (Laycock Only)
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