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It's on the front of the engine block at about 10 o'clock. You need to pull the number 9 fuse under the hood, disconnect the cable from the sensor, and remove the 10mm bolt. I would suggest you buy the new part from International because they tend to be about half the price of Ford. International calls it a "CAMP sensor" and Ford calls it a "CMP sensor". When you put the new sensor in place, make sure to coat the new seal with either oil or vaseline. BE VERY CAREFUL not to round the bolt. It's in a tough location and is on there real tight. Also, be sure to get the correct part. There are 2 sensors that are used, and your engine uses the older style.
Here are the International part #'s for the sensor:
Engine Serial # 375548 and below is part # 1821720C99
Engine Serial # 375549 and up is part # 1825899C93
Question for Johndiesel...
The opinion I get from the many posts on this subject, it seems like this sensor is a weak spot on the PSD and most of the failures occur from '99 and newer. "97 and older doesn't seem to have that frequent of a problem, but is it often enough that you would advise carrying a spare in the clove box... Thank ya' much..