I think you are confused about the freewheel feature. When you engage the kickdown switch you are essentially bypassing the overdrive function and reverting back to direct drive. Freewheel has absolutely nothing to do with anything during this operation. If you are driving in 3rd overdrive and press the accelerator to the floor it will shift the transmission into 3rd direct until you let off of the gas and then it will shift back into 3rd overdrive.
There is a slight pause (freewheel) when you let off the gas while in gear before the transmission shifts into overdrive.
In most cases it is not even noticeable.
The system will also go into freewheel when you slow down under about 30mph. When you stop and take off again you will be in direct drive until you get up to speed for the OD to engage.
These transmissions also lock out the planetary gear as part of the reverse lock out function. When the cable is pulled out for direct drive the solenoid or any other overdrive components will not engage.
Fred

Last edited by rfs56trk; 05/06/2016 5:06 PM.

1956 3100 Pickup/Red/350/3sp OD/PS/Disc Brakes
1957 Bel Air Sport Coupe/Red/355/TH350/PS/Disc Brakes
2017 Silverado LT Single Cab SB/Black/5.3/6 Speed Trans
1947 Willys CJ2A w/F-Head engine