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I have a '95 F350 7.3 PS with 260K miles. Runs good but lately if I come to a stop and put it in reverse to back up it immediately stalls. It starts right back up and only does it when shifted in reverse. If it doesn't stall, it lugs for a couple of seconds like it wants to and then levels out. Is it Engine or Transmission issue?
Never run into that before. What if you put it in nuetral a couple seconds before reverse? Another thought, moving the shifter is messing with the ignition switch causing it to shut down.
Sounds to me like a transmission problem. With trans in Park and engine at idle, check that the trans fluid level is up to the mark on the dipstick.
If that is OK them maybe drop the trans pan and check that the filter has not dropped into the pan.