Ok so this is probably the stupidest question in the world but please be kind.
What is overdrive for?
Isoverdrive on when the orange light is on?
Or is it when the light is off?Thanks for the help.

Sorry for the bad pics, i used my camera phone.

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Overdrive is a higher gear in your transmission. When you turn it off, you will only have 3 gears, instead of 4. This is for towing mostly.

 

Also, you can use it for hills. If you are doing a lot of slow city driving and you dont want your transmission to go all the way up to 4th, turn off the OD. When your light comes on, your OD is off.

 

God I wish I had that problem, some moron replaced the tranny before I bought it with a three speed. Top speed 85 MPH, and backfires while slowing down

 

When the lite is on the Overdrive is turned off....try it when coasting down a hill...hit the button and feel the shift down one gear. The reason you turn your O/D off when towing is so that the tranny wont continuosly shift up and down which generates heat and burns out the clutch packs

 

Exactly right.
Also, something most people either don't know or just over look, is that over-drive will usually kick in at any speed over 30-35MPH: just like city driving. Gas mileage will not be effected if you turn over drive off while doing city driving, but it could help the transmisssion out . Also, if your doing highway driving over very hilly terrain (where you have to constantly give it more gas for the next hill), it probably wouldn't be a bad idea to disable O/D as well.