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I'm having problems with the e4od in my 90 f250, when stopping after warmed up it goes into neutral, and I have to hit the gas to make it engage, also if I don't press down firmly on the brakes while stopped the transmission bumps in and out of gear, but it has done this for over a year without worsening or failing, fluid is new and doesn't smell burnt. I have heard the mlps but where is that at?
Before tossing parts at the problem check for codes first. The E4OD transmission is 100% electronic controlled. Use this procedure to pull the codes yourself: Fuel Injection Technical Library » How To Run a Self-Test or purchase a code reader such as the Equus 3145.
If the codes reveal nothing then it would be a logical next step to replace the MLPS. The MLPS is located on the driver side of the transmission where the shifter cabe/lever attaches:
Be aware Ford changed the MLPS design in 1995. You will most likely find only the later design which will require you to remove the pins from the old plug then re-insert into the new design plug. The cheaper MLPS products may not include the new style plug connector.
It looks like you may have a 4 wheel drive.
Something else that will cause this and is very common as it happen to me is the wrong transmission filter.
If you put a 2 wheel drive filter in a 4X4 pan it will cause this problem.
My F53 RV that uses the 4X4 pan when I got it the Ford dealer the PO took it to put a 2 wheel drive filter in it and I had the problem when I bought it. Put the right 4X4 wheel drive filter in it and the problem was solved.
The scan showed code 11, so all is good, the mlps looked terrible, there was water seeping out around it, also I noticed a vacuum line it looked like running from the t-case on the driver side towards the front of the truck that is not hooked up, just plugged. The tranny was put in new 30k ago and he swapped all old sensors over, as the new one came with none. So what would you guys recommend I do next?
I would replace the Manual Lever Position Sensor (MLPS sensor), some call it the Transmission Range (TR) sensor or Neutral Safety Switch (NSS).
Make sure you line up the lines with stalk in neutral gear.
If that does not do it and if the transmission came with a filter and they used your 4X4 pan I would drop the pan and see if you have a filter with the long pickup tube on it.
Also there is a retainer to keep the filter from dropping to the bottom of the pan. If it was left off a dropped filter will cause this problem also.