Update on the E4OD transmission

Thank you all for your response. I read every one of the responses as they helped me formulate a path. Jimg from Allentown's first sentence was key. "The transmission is completely controlled by the puter" That reinforced my suspicions as i didn't think it was necessarily a mechanical issue.
I fetched a Ford service manual and took a look at the list of symptoms that closely matched mine. So I replaced the vehicle speed sensor on the rear axle.

Now, I only drove it about five miles, making it shift as much as possible. Seems to work well. I did disconnect the battery for about twenty minutes too, so this leaves open the question, was it really the speed sensor, or did cutting the power to the computer reset it? I'm not sure, but we'll see.

Thanks again for your help.
 
When the computer sees an error in the transmission, it generally sets a code. Not all of those codes are readily available to most "homeowner" scanners. When there is an error in the transmission, instead of lighting the "check engine" light, it will make the "O/D off" light flash.

This section of the powertrain control resets every time the ignition switch is cycled. Transmission errors can range from "incorrect gear ratio" to shorted or open circuits in the solenoids or sensors.

Chances are you had something else going on with either the O/D light, the ABS light, or the traction control light being lit as well as the erratic shifting going on.

The transmission has input and output speed sensors which must agree with commanded gear ratio, road speed, and engine RPM. Chances are you had a code that your scanner could not read.
 
Moving the harness to the VSS may have temporarily fixed it. Those harnesses typically have broken wires inside the insulation.
 
Now you have me cornfused. I think youre saying that the power interuption to the computer was probaby the fix. OD light wasn't blinking. Pretty sure this rig doesn't have ABS (GVW 16,000)I will double check. The guy who scanned it said it was code free. He's owned the same transmission shop for thirty years. Still a mystery. But thanks again for your help.
 

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