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Where is the adjustment for the overdrive kickdown switch position? Mine is so far down the pedal that it does not function until the carb starter solenoid engages.

I suggest you look into your car starter switch. The kickdown should be at a point beyond full throttle. The start position is somewhat before 3/4 throttle. BUT, the starter switch should never engage the starter while the car is running. If so it is assembled wrong. Pull the starter switch out and make certain that the notch on the actuator that contacts the ball is facing UP.

Thanks for your quick reply. The carb starter switch is disconnected; car starts with a button on the dash. The problem is that the car starts running terribly once you push the accel all the way down, and does not run correctly until the OD disengages. I theorized that it had something to do with the carb starter because i did not realize that carb starter is 3/4 down. Is it possible that (nonfunctioning) carb starter is not installed incorrectly and causing a flood or something?

When you engage the kickdown switch it activates an ignition interrupter as a portion of the kick down cycle. You probably have a wire either shorted out or possibly miss-wired. There might also be a faulty solenoid or governor involved.