Maybe it's just a horrible coincidence and your Drive indicator bulb decided to burn out at just the right (wrong) time.
If you're driving it then it is obviously in gear. Have you gotten it up to highway speed to see if it drops into overdrive? Other than pulling the instrument cluster to see if the Drive bulb is burned out, I would think highway speed would be the only way to see if it is getting/can get out of third gear.
"The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong, it usually turns out to be impossible to get at or repair."
-Douglas Adams, Mostly Harmless