Matt_Jr, I hate to disagree with you but what you are describing is generally called a Locking or Lock-up Torque Converter, it sits between the engine and the tranny where the clutch would go on a vehicle with a manual tranny (more info
here (Wikipedia)).
The overdrive on the other hand is the last unit in the transmission or is bolted onto the rear of the transmission (on older vehicles), it makes the driveshaft spin a little faster than the final gear on the transmission, this gives you more speed but less torque, this imporves your gas mileage as the engine spins at lower RPMs, however the lower torque available causes the tranny to downshift more often, kick in and out of overdrive more, or both when under heavy loads, this is hard on the transmission and can cause premature failure. for more info on how a overdrive works there is a decent description
here (Wikipedia)
with the cars I have had, there seems to be about 1/2 of a gear worth of speed increase and slightly better mileage.
Aaron Z