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This is common to the AW70 transmission when the rear bushing has been left very worn for a period of time. The rear shaft wear heavily on the main transmission housing causing the pressure not to build enough to engage the overdrive gear.
The gear may be stripped, can't catch other gear,have you been grinding this gear,will have to go into transmission and replace third gear,will have to wind second gear out and shift to 4th gear.May be better and cheaper to get a remanufactured transmission cause all parts are new versus just 3rd gear being replaced.
Normally while driving in overdrive (4th gear) you will feel it start slipping and finally slide into third gear. Then 3rd gear slips out into second, and you will never see 3rd or 4th gear again. I'm guessing this was the problem? If so its time for an overhaul
I have a s40 1.9d / 2000 plate,
In the last month or so the car loses revs when changing up to 3rd and 4th gear, I can only get 50 mph max in 3rd gear 80mp in 4th.
The car has just clocked 185,000 miles
Its a great car but a pai at the moment, I've had a service including fuel fillter change added fuel cleaners to the deilsel all to no avail
From the sounds of it you need to have your transmission rebuilt, there is no quick fix for a fault in one gear. As far as the tapping noise goes quite often a oil change is all that is required to cure it.