ok NEW INFO

I revved the engine in reverse and the truck moved but barley
The M S lights came on and also the D light started blinking

 

When you are in park or drive does the LCD with the odometer show P or D, respectively?

 

So that rules out a failure in the drive line which leaves only the tranny as the problem. Do you have any service engine light on, if so get the codes read and get back to us with the fault code numbers which should then show what sort of a tranny issue you are having.

 

any chance your in or near Michigan? I'm about ready to scrap out my 99 discovery II.
The tranny is strong, But I never found a buyer for it. if you want it, you can have it for $150

 

That's probably the best deal you'll ever find on a D2 tranny. Heck, the xyz switch is probably worth that.

 

Noahav,
Could you crate it for me?

Disco mike the codes are
Po722
Po444

 

Sorry, I can't crate it

 

Does anyone know if the OPs problem was fixed? My '04 is giving me the same problem (M and S lights on + D is blinking + trans won't engage). Thanks!

 

I was just reading all of this, so I figured I would chime in. I am fairly certain that I bought this vehicle from the OP about a month ago for purposes of parting it out. It would not move under its own power when we picked it up. It was not locked up, it was just that the trans would not engage. So...when we pulled the engine and trans, we saw the problem. The vehicle had a new transmission in it but whoever did the install managed to put the transmission on a weird bind, so the trans was not bolted against the engine. There was about a 1/2 inch gap between the two. All present were amazed. Just figured I would share because I know these stories that never end in a resolution of some kind are frustrating.

 

Thanks for chiming in but unfortunately it doesn't sound encouraging to me. I just had it towed to my shop and if they tell me I need a new tranny I'm gonna have a fit.