Toyota Repair: transmission slippage, transmission slippage, worn clutch

Question
Hi Ted,
    My mechanic says I need new solonoids for my automatic tranmssion on my 1992 toyota camry 4 cylinder.  The overdrive lite flashes and the car feels flat while initial accelerating and skips 2nd gear. No diagnostic codes displayed in the computer.   
Can you comment on his findings and make some recommendations?  Is my mechanic right or do I need a new transmission?
Thanks,
Stan

Answer
The O/D light flashing means that there is a problem and there will be a trouble code in the computer.
I'm not going to be of any help unless you can provide me with a trouble code stored in the computer that would justify replacing any of the solenoids.
The solenoids only control the shift points of the transmission, if the transmission is slipping there is an internal hydraulic pressure loss, this may be caused by a worn clutch pack or a leaking seal, in which case the transmission would have to be replaced. Also, the overdive light flashing means that there is a trouble code stored in the automatic transmission ECU which is part of the engine control computer, the procedure to retreive the transmission trouble codes are different than the engine trouble codes and they are indicated by the number of flashes of the O/D light, have the mechanic check those codes, once you know this information you may get back to me if you would like my input.