I know this thread is somewhat old, but I figured I'd bring it back alive with a question.
My girlfriend's 2005 Camry w/automatic transmission has an electronic O/D button on the shifter. You have to manually turn O/D off, and it's always on by default. Even if you turn it off, it will be on once you turn the car off/on again (like the Traction Control on the LS). I thought it was weird that it keeps the car in O/D by default, because I was always under the impression that you should only be using O/D for highway driving. So, I looked it up in her manual, and it says to keep O/D on all of the time for the least engine noise and best fuel economy.
So, from gcwimmer's excerpt from the LS owner's manual, it says to use D4 (O/D off) for city driving. I still find it weird that the automatic Toyota Camry is setup to have O/D on all of the time. Any thoughts on this? For those of you with an automatic LS, what drive do you usually have it in for city driving? I've always put mine into D4 when driving in the city, and D5 when on the highway.