I have a new engine that is doing great. 3 hours of running and it misdoing what I would expect. I also have a rebuilt transfer case that seems to have the kinks worked out. The transmission is also rebuilt and I think it is the one giving me issues.

I can shift into Reverse and it will move backwards. I try to do the same for any forward gear and it just sits there, doing nothing. All of the shift lights on the gear selector and dash are indicating the gear is properly selected. It threw a P0722 code and had the D on the gear selector with the M and S on the dash flashing, so I took the XYZ switch off today, cleaned it, used dielectric grease to lube it, and sealed it back up(picture below), and then tried to adjust it's position while the engine was at temp and my wife was in the driver's seat. I'd read that was a common issue on these. I don't know if there is more to it than just angling it until all of the gears shift correctly without the light turning off on the dash and gear selector. I don't know if there's more to the science of it than that,and it very well could be the issue. When I went back out after disconnecting the battery, it did almost the same thing, and immediately had the M and S lights flash with the D on the gear selector when I tried to shift into a forward gear.


I also know it is full of transmission fluid because I also had my wife shift through all gears while I filled it. I filled it until it started to run over while dry, then filled it while in park and running, then in every gear until it started overflowing from the fill hole. It has plenty of transmission fluid. Right around 2.5 gallons, including the transmission stop slip recommended in the major overhaul.

Other clues:
-Transfer case was in high for most of the testing (also tried low diff locked and unlocked, and hi diff locked and unlocked, and neutral)
-The transmission and truck only gave the familiar soft bump into gear when shifting into reverse. The other gears do not have that soft bump of the transfer case engaging the driveshafts.
-The revs go up slightly when in reverse. Park and neutral, the revs went down a bit relative to when I try to shift into a forward gear.

So what does everyone think? (thanks in advance for the advice, ideas, etc.)

 

I am having this SAME EXACT ISSUE. It made me happy to read this but then I saw no rookies or answers. What did you figure out? I planned on starting this tomorrow. Thanks in advance!

 

Exact same issue (recently rebuilt transmission)? Have you tried manually shifting the transmission? It you've have no luck with manual shifting, it's likely your reverse clutch has failed. You'll have to remove the transmission and either have it serviced or replaced.

 

Ive gotten underneath and moved the shifter but d,1,2,3 don't engage, reverse works fine. M and S lights blink. Transmission is 2yrs old

 

Well, if you trust people like Ashcroft in the UK, they say it's time for a rebuild or replacement.

Ashcroft Transmissions

 

Did you replace the original XYZ? Seems that the P0722 is a case of slipping torque converter that is why M+S blinks when on limp mode. I had issue with the xyz and replaced it and it was a P0705 code saying gear position switch incorrect output. It worked after replacing the switch. The switch originally with black plastic cover, I assumed that its different from the grey cover though online saying its from 2000 to 2004 models. When I used the grey cover xyz, It did not work only R where I felt that it was engaged. I did not try reversing it coz i was on a ramp. I wont be able to move back up if the rest is not showing on the shifter or the dash, also that I cant feel it was engaged to different settings. But with the replacement with black cover, the disco did not start at first since the adjustment was not aligned only after correct alignment. When I installed it, it was in park and the lever at the xyz had to be all the way to the front 6 clicks, the lever had to be almost at the end of the cable when being tightened.
I saw in some post how the switch was cleaned in detail, (Rebuild D2 ZF Selector Switch UHB100190 - Australian Land Rover Owners) all the multiple contacts and making sure it touches the next contact when the shifter changed positions.