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is the overdrive relay supposed to click when the overdrive cable is pushed in and the key is turned on?and does the relay normally get warm to the touch?

That doesn't sound correct at all. I just wired up my relay and it won't energize until the governor kicks in.

As Phils38 mentioned, it should not energize until governor is at speed. If you changed the governor last month, make sure the correct wire is used and the other is taped and not touching. One for OD becomes connected to ground at speed and the other is connected until speed reached which is for the EC. It sounds as if the one for EC is the one being used.

If it's a standard Packard governor, then the correct wire will be the yellowish-red one connected to the exposed terminal (like the single wire bottom shows). The one used for clutch is coming out of the little bump covered with tar. If the governor is not a Packard, then it might be different and you will have to use an ohmmeter and pick the one that is not connected to ground when sitting.

If the correct wire is being used, then it sounds as if the governor is bad or there is a short in the wiring. If you can lock out the OD by moving the knob and relay drops out, it is probably governor related. If it still stays energized when lockout knob moved, then look for wiring.

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tested wires and had wrong one hooked up. went thru all the tests in the overdrive manual and electrical seems to work fine, but still no overdrive. wired switch form relay to ground at governor hookup so i could ground it while test driving and still no overdrive.any ideas why?

Does your solenoid click when you bypass the governor? When I was playing around with my wiring I found that I had the power and governor wire on the wrong terminals. I don't have a kickdown switch so I don't know if that would give you grief. I am using a toggle switch on the dash to deactivate the governor and a momentary button to disable the ignition. Seeing that you have a governor bypass set up just turn your key on and stick your ear under the car and have someone hit your bypass and listen.

will double check and let you know results

solenoid and relay clicks when governor is bypassed

If you've verified the solenoid is actually energized and not just a relay click then it almost has to be mechanical.

Sometimes the relay can sound pretty loud. If there is any question, remove the large black-yellowish wire from relay terminal that goes to solenoid. Use your bypass to energize the relay then touch the solenoid wire back to the terminal. If you hear the solenoid clunk for sure, then start looking at mechanical things.

tested that and solenoid is definitely clicking

Solenoid OK, then it appears your looking at mechanical.

One thing worth looking at is the adjustment of lockout lever. Last year someone had mentioned his cable had gotten loose and slipped so the lockout lever was not making full travel. Don't remember which OD unit that was on but an easy check. Just disconnect lever & clevis and see if it can move any further. If it can, adjust so when knob fully engaged lever is a maximum. If that's OK, then time to start looking internal.