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Probably the oil is low. Easy to fix, as follows. Drain the transmission oil. Remove the overdrive cover plate, clean the metal flakes off the magnet in the cover plate, clean out the filter screens (requires a pin wrench), reinstall the cover plate with a new gasket, and torque to specs. Refill with fresh clean transmission fluid of proper type, then recheck after 500 miles. Should work like a charm.
It is slightly possible that you might need to resolder the pads in your overdrive relay. Check the archives and FAQ for "resolder overdrive pads". Also pretty easy.
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-- Bruce / '82 244 (315k miles!), '86 745, '87 760Ti, '94 854
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