94 Toyota Camry Check Engine Light "ON" and O/D light flashes

The fact that you can cure the transmission problem by locking out the overdrive MEANS THAT’S WHERE THE PROBLEM IS!! Your “mechanic” is just a parts changer. Take the car to a transmission specialist and have an expert look at it.

The CEL MIGHT be a different, unrelated problem. Have the trouble codes read and post them back here. Many autoparts stores will read the codes for free.