I have an extremely annoying issue. My 93 240 auto will not engage 4th gear, and the orange arrow is lit up. When I press the button about 25-50 times it will eventually connect and turn off. Now it wont do it at all, no matter how many times i press the button. I can hear a electronic "clicking" when i press the button, coming from under the shifter but no engagement. Please tell me this is a cheap fix, and not an internal transmission problem. I just bought this car last week from the original owner and it is an excellent 240 wagon.

Also, I have a moderately loud ticking noise coming from the manifold/valve cover. I suspect a manifold gasket leak, as I smell of exhaust on long drives. No stud bolts are missing. Engine Oil is full. I just hope the ticking is not from the valve train. These cars dont have head issues do they?

Thank You
Ian

 

A common problem on those cars is the overdrive solenoid. It is possible to replace the solenoid with an aftermarket one and still have no overdrive because the unit is improperly drilled. If I'm not mistaken IPD makes a block off plate that leaves the overdrive hydraulic circuit permanently engaged. I would check the solenoid and start there.
Look at the wire coming out of the bottom of the shifter and make sure it isn't chaffed. Check to make sure the top of the solenoid isn't coming apart. Actuate the solenoid and check to verify it is actually clicking and you aren't hearing the relay or button. ALso check your trans fluid level. It is likely your problem will lie in one of those things.