Thermostat?

Here is the problem: When i bought my car i noticed when in OVERDRIVE the temp would rise from 1/4 to 1/2 while driving off and on. But in DRIVE the temp would stay at 1/4. Is that a sign that its time for a new thermostat? (It has never went into the redzone)has anyone else had this issue?

Sounds more like your TCC is not working to me. The torque convertor is not getting locked up and thus the trans is slipping a little bit. This generates heat and it transfers to the engine via the trans cooler in the radiator. I've seen this on my p/u when pulling a trailer in OD, rather D and the same with my Astro when bucking a large head wind.

CD Smalley nails it - the torque converter on a TCC system has more "slip" (aka: higher stall speed) than a non-lockup converter. If the TCC is not engaged in overdrive, then the converter will overheat and this not only increases your engine running temperature (due to the transmission heat exchanger in the radiator), but it will also cook your transmission - generally in short order. Get it fixed, or don't use overdrive.

Exactly! My transmission has been slippin a bit! The question now is how to fix the TCC?

Exactly! My transmission has been slippin a bit! The question now is how to fix the TCC?

Depends on what's causing the problem - usually the TCC solenoid, sometimes the electrical connection to it, sometimes the torque converter itself. Sometimes it's even that switch on the brake pedal (there will be two, one for the brake lights and one for the TCC). If your transmission is slipping, then it's time for a rebuild. While you're doing that, replace the TCC solenoid and the torque converter.

Does your car have a TH2004R, or a 4L60 (700-R4)?

Depends on what's causing the problem - usually the TCC solenoid, sometimes the electrical connection to it, sometimes the torque converter itself. Sometimes it's even that switch on the brake pedal (there will be two, one for the brake lights and one for the TCC). If your transmission is slipping, then it's time for a rebuild. While you're doing that, replace the TCC solenoid and the torque converter.

Does your car have a TH2004R, or a 4L60 (700-R4)?
TH2004R