M & S lights flashing, limp mode, is the selected gear indicator display working correctly ? My first choice would be the xyz switch. It sits right underneath an aircon drain tube and is a renowned failure point giving the symptoms described. The auto may have been changed but no one gives xyz switches away so it's probably been transferred over from the old box. If you're real lucky it may be mis aligned and a simple tweak may solve the problem but you'd have to be real lucky.
Have a look at this
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Deano
66 SIIA SWB .......73 SIII LWB diesel wgn
86 RR 'classic'......99 Range Rover P38a
94 Defender 110..95 Defender 130 Ute
96 D1 300TDi.......99 D2 TD5 (current)
04 D2a Td5..........02 Disco 2 V8
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