1992 Ford F250 with 7.5 l has only 2nd gear and the overdrive light is flashing

Either your drive bands or your drive servo is bad in your transmission...you burned it up

first the fuses, all 6, yes 6.
4speed tranny, and is TCM (puter brain) shifted.
no flash codes from TCM?
http://www.fixkick.com/tranny/slush/OD-flashes%20now%20what.html
the TCM controls all 3 shift solenoid.
and OD, has many defeat rules in logic of TCM
one is if TCM , sees 4wd drive active it will not use OD
if the TCM sees errors, (did you dump the flash codes yet?)
it fill not use OD
if the TCM , sets limphom mode, (fail safe) it will not use 0D
or may skip second and use 0D. all this is in the FSM.
there is the tcm brain
http://www.fixkick.com/tranny/TCM/Tcm-macro1.jpg
here is a free online fsm on topic.
chapter 7? RTM
http://www.acksfaq.com/trackerfsm.htm
and 8a-39?

there is a part of the linkage in the steering column,that wears and or breaks,a steering colmn specialist can check this for you and replace it if that is the problem
if that is not the problem, it sounds like you need to take to a transmission mechanic.QUESTION: is the overdrive light on gear shift flashing/ if it is flashing, the problem is definetly in the transmission,not the linkage

When the OD light flashes in this truck it means a malfunction has occurred in the transmission, it usually will be due to excessive slippage of the transmission based on the signal of the input and output shaft speed sensors. Here is what you need to do is have the Transmission Control Module tested for the fault code or codes that was stored when the light starting flashing, it is doubtful the valve body is the problem based on my 30 years as a Ford dealer technician.

What is happening is the tranny is going. They can try to replace the selenoid, but really, you need a rebuild. Whomever charged you to remove the light, probably messed things up more. Volvo's typically lose overdrive before losing all the other gears. It is time for a rebuild. Go to a reputable tranny shop who knows volvos.

you will need to connect it ti a scanner to confirm but it sounds like your solenoid (there is a solenoid that controls those gears inside your tranny) the part is actually cheap and should take no time to replace. the cost comes in a way of replacing the tranny fluid that will be lost.

my overdrive light is flashing due to a shattered speedo cable tip. check your fluid level. you may have to change the tranny filer and redo all the fluid.

3RD GEAR IS THE DIRECT CLUTCHES . WHEN THE GROMMET BROKE YOU LOST LINE PRESSURE IN THE TRANSMISSION RESULTING IN BURNING THE CLUTCHES .THE ONLY FIX IS TO REBUILD OR REPLACE TRANNY.BAD DESIGN BY FORD .YOU CAN FIND A BRONZE ONE AFTERMARKET

I had/have both of these problems with my '92 Explorer. They were unrelated. My overdrive problem
required a transmission rebuild. My four wheel drive not working is apparently a problem with the
computer which is hidden behind the left rear quaterpanel (in the jack compartment). Your four wheel
drive problem could be as simple as a blown fuse. There are 2 fuses for the four wheel drive system.
One inside under the dash and another higher amp fuse under the hood on the battery side. Or it
could be the more expensive problem like my computer problem or the engagement motor needing
rebuilt. The computer has a diagnostic mode that you can access by pressing the little square white
button on the underside of it with the key turned on but the motor not running. If the little red light
next to the button stays on, then the computer is bad. If the light flashes, the engagement motor is
bad.

Automatic: 4-speed overdrive
Manual: 5-speed overdrive

If this was not what you were looking for, please clarify and I will find the answer for you.