Have you tried draining old ATF? I know you said all the services have been carried out. Any bill of sale indicating ATF change? If not, try the 3X ATF procedure; you have the 5spd. 2002 Honda CR-V Drive Light Flashing

Good luck.

 

Yes, I did drain and replaced the Old ATF. I guess I will have to settle on the expensive option of replacing the entire transmission

 

You are in bad luck. A blinking D is as bad as it gets before you end up by the side of the road waiting for a tow truck.
You need to pull the code it has stored at the ecu. Chances are it comes up with torque converter lock up code.
But anything is possible but before you spend $$$ buying ATF get the codes pulled and go from there.
You can try removing lock up solenoid and hope the filter screen is dirty, clean it up and put it back together. Hopefully this helps.

Good luck.

 

Guys, my CRV HONDA RD7 continously blinks the D indicator. When changing from P to D or R, the car jerks vigorously. It has difficulty accelerating or going up hill.
Recently, it stalled - doesn't respond to any engaged gear. All this is despite the services carried out on the car.
My local mechanic recommends a replacement of the transmission system, which is obviously expensive.
Anyone with a similar past experience and how it was solved?

Try replacing the output shaft sensor