Thanks for the reply. Mine OD is a bit of a "one off" installation. I think mine is an early 50's Rambler unit that had flat flanges front and back, as Ramblers back then still had enclosed drive shafts. There's no lock out switch on it, and it was only used back in the day to drop power when shifting into reverse. Along time ago I found a guy who was splicing those units in Model A torque tubes to give those cars some highway legs. I think I was the first post-war car that he did it on, as my '47 still haa a torque tube. He took a chunk out of the torque tube back towards the rear and spliced the unit in with some clever machining.
My electrical set-up is quite simple. I run a line from the ignition switch to a toggle switch and then to a small square automotive relay installed back by the unit. I use that line to power both sides of the relay with the control terminal going to the governor switch and the load terminal going to the solenoid. With that configuration, power is always on to the governor switch if I leave the toggle on regardless as to whether the OD is being used or not. That also means that the solenoid gets energized once speeds exceed 28mph, again whether or not the OD is being used (i.e., cable in or out). Looking at a standard B/W installation diagram it looks like power always is on to the governor switch and solenoid being activated even when OD is not being used.
The lock out switch that you mentioned actually has nothing to do with that and only was there is drop power to the governor switch when shifting into reverse. But as you mentioned, they dropped that switch after a while, assuming people didn't drive over 28mph in reverse!
My question remains -- is power always routed to the governor switch (and then to the solenoid) if the OD is not being used in a standard installation? Out of precaution, I turn the toggle off when not using my OD, but sometimes forget. Just wondering what kind of damage may occur.