[fredv]

Solenoid is correct and electrical system is working.
It seems that the pawl engages the blocker ring when I'm turning the driveshaft by hand, but not when the engine is running.
I added a switch between the governor and the kickdown switch to cut the juice when the OD is manually disconected.

Here is what I found in the Borg Warner instruction manual:

Improper position of blocker ring:

1 - Occasionally, either in assembly at the factory or in service operation, the internal parts of the OD unit may have been rotated with the solenoid removed and the pawl withdrawn from its normal location. This may cause the blocker ring to rotate, so that its two lugs are not located with respect to the pawl. The solid portion of the blocker ring may be in alignement with the pawl, which will prevent full engagement of the pawl with the sun gear control plate.

2 - To test for this condition, remove solenoid cover, pull dash control knob out, roll the car 2 feet forward. Push dash control in, turn ignition switch on. Then, ground TH SW teminal of relay, and watch movement of center stem of solenoid. It should not move more than 1/8 in. when solenoid clicks.
Then, with the relay terminal still grounded, shift into low gear, and roll car forward by hand. Solenoid stem should then move an additional 3/8 in. as the pawl engages fully. These two tests indicate proper blocker action. Unless both tests are met, the blocker ring is probably not in the correct position.

3 - Rather than dissamble the entire OD unit, this condition may be corrected externally. With the transmission in neutral, and the dash control pulled out, move car forward one full turn of the propeller shaft. Then, loosen the two solenoid capscrews as far as possible, without removing and pull solenoid out as far as it will go, and hold it there while the propeller shaft is turned forward about 1/8 turn. Then push solenoid in and tighten capscrews.

I did the test 2 and it seems that the solenoid stem moves much more than 1/8 in. when energized, opening the 2 solenoid contacts.
Then, I shifted into 2nd gear and turn the propeller shaft by hand, and the solenoid stem moves again engaging the pawl as the propeller shaft was blocked in both directions.

The fact that the solenoid stem moves more than 1/8 when energized might be my problem.
Any ideas about that?