There are a few things going on that I suspect - but testing really needs to be done to know for sure.
Your transmission range sensor (and / or wiring harness connector) could be at fault for not being able to get park or reverse (or 4 low).
Your vehicle speed sensor may have a role as well.
The flashing O/D light is evidence that there are going to be codes stored in the engine's processor that should give you clues.
The "drill" noise -- wondering if it's a bearing noise or a transfer case noise. Puzzled here - would need to hear the noise first hand. Perhaps find a local shop that would be willing to go on a no-charge road test with you (to hear the issues).