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Let me begin by saying that I spent nearly thirty years in the suspension / alignment business, but , as I prove often, I know absolutely NOTHING about automatic transmissions! I have a 90 F250 4x 7.5 and E4OD. I have been chasing electrical gremlins, and I'm not sure if these problems are related or not. Symptoms: When starting off in drive, it feels very sluggish, as if it is starting in second gear. Manually putting in first works. When left in drive it will drop all the way into fourth at 20-25 mph. If left in drive, when you turn a corner and step into the throttle the trans will rapidly shift up and down causing a surging effect. Manually moving the shift down into second stops this. I have been considering swapping the PCM from an 89 7.5 E4OD parts truck I have, to see if that cures any of the problems. Any suggestions would be greatly appreciated!
It sounds like the converter is locking up in the wrong gears and at the wrong time. Things that can cause this could be a coolant temp sensor, PCM and maybe a worn pump.
Check to temp sensors for the engine first, it might have one for the gauge and another one for the PCM, also the temp sensor in the tranny can do this as well so check that one as well.
Okay, ask and you shall receive, the codes I got were 15, PCM memory test fail, and 27, VSS malfunction. I am assuming that either one would confuse the transmission, and both together are nothing short of catastrophic. I have ordered a new VSS, and plan to pull the PCM from my 89 parts truck and install it. More to come....