when something happens to cause the trans to go into a default "limp" mode it flashes the light, and depending on what the problem is it could up the line pressure to 100% and slam through the gears as well. that happened to me when my TC started slipping.
Check the VSS plug (Vehicle Speed Sensor) on the forward top part of the rear diff case. The plug had come loose on our X causing the OD light to illuminate and other gauge operational issues.
The sensor itself may collect metal particles that can interfere with the reading,best fix is to replace in that case.
Well, one of mine does it because of the chip and the other one did it because of a broken wire in the shifter harness. I think it was about $50.00 at the stealership.
Check your alternator and batteries... the flashing OD was one of the problems I got when mine went... speedo would jump all over the place until I got up to 30 mph... then it would level off and act normal.
When my F250 Vehicle Speed Sensor on the top part of the rear end went bad the OD light flashed. The ABS light also came on. My speedometer would only work after I reached 40 mph. It is easy to change and only about $23.00 at NAPA.
Exactly and the only way to narrow it down is to read the codes. It could be anything - a loose wire, bad converter, speed sensor and a million other things. The flashing od light is just the check engine light for the transmission.