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The mechanic said the problem seemed to be associated with the speed sensor but wanted me to drive it more to see if the code comes back. In the meantime, my failing Idle Air Control Motor completely died and the motor would not idle at all. The mechanic now believes the IAC is to blame for the faulty/hard shifts, so he replaced it and said to drive it for a few days and see if the problem is fixed. Unfortunately, the only time the tranny shifts hard is after driving for 30 minutes, which i don't do that often, at least not continuously.
I really don't see the connection between hard shifting and the IAC, but the mechanic said it is very likely since the computer is sensing a bad part, therefore it can affect other things, like the tranny.
with my 92 ford, when the the vss went bad the computer went into a "limp home mode". This included real hard shifts and a code. Maybe same type of thing.....