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It doesn't hurt a thing to engage the OD at "normal" hwy speeds. I wouldn't know what would happen at 140 mph, though.
Mine seems at times to "backshift" as you call it, into what feels to me like "neutral" at about that speed on occasion. Don't know if it's normal or not, but the tranny does its thing otherwise with no problems.
what about runnin it threw the gears like 1st 2nd d and then od would that hurt any thing :confused:
Nope, not as long as the ECM or RPM limiter was doing its job. Many who drag race their 'vettes, "manually" shift their automatic trannys.
Personally, I've found that simply leaving it in Drive, works just fine with no appreciable difference in acceleration times.
What you do NOT want to do, is jump on it hard off the line, and when the wheels begin to spin, you let off on the gas and then tromp on it again.
If you do that and manage to catch the tranny inbetween shifts, you can run the very real risk of stripping all the clutches clean of friction surfaces and kiss your tranny goodby.
Running up to 60mph in 3rd shouldn't be a problem; with 2.59 gears you were only at about 2,100rpm on the tach. In fact the GM shop manual mentions that D is for city driving and OD for highway.
That down shift speed sounds about right for a 3-2 shift.
However to assure a long efficient A4 life you should change the fluid & filter periodically.