What wiring diagram are you using? None of the SV wiring diagrams in the WSM show an OD warning light. I have an OD warning light on my car, and it is wired and operating correctly, but I have not seen any diagram so I am puzzled about what you are using and how you wired it.
It is a bit scary to hear your situation. Are you sure your OD turns off when you go to the 1/2 gears? And does the light go off when you turn the OD off with the switch?
Many of Ken's questions are also mine.
Ken, you are correct that the "reasonable" place to wire the warning light would be the solenoid lead, but that is NOT where the factory wired it - on SIV's for example. They wired it to the W2 terminal, so it shows that the relay is energized. In trouble shooting my OD relay I added an extra indicator, just a simple LED and resistor, to the "reasonable" place, the solenoid output terminal C1. Now I get an indication that the relay is powered, AND an indication that th esolenoid has power also.
Tom