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I can't explain how it works like it does. Try running your speed to and above the engage speed but don't lift your foot to allow it to engage. Watch your ammeter dip as the solenoid is energized and then recover into charging territory. On the other hand, if the solenoid or wiring is faulty the ammeter will show a discharge and not recover until the relay is de-energized. I agree that the lock out switch is desirable, but as long as the solenoid operates correctly there doesn't seem to be a problem. Maybe switch your present OD housing to the rebuilt transmission.