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I have a 1989 F250 with 351W and E4OD transmission. I'm getting an error code 67. Also, my OD off light stays on (solid, not flashing) and won't change. I have changed my neutral safety switch with no luck.
Clear that code and run test again to see if it is still there. Memory comes automatically when KOEO is completed. If in memory it shows as intermittent. Make sure your A/C is off when you run the test again.
67 Park/Neutral circuit fault - PNP
Transmission Manual Lever Position (MLP) sensor circuit - Transmissions
(M) Intermittent Park Neutral Position (PNP) sensor fault - PNP
Here are several Threads from the forum about the MLPS. Take a look at them and see if any of those solutions sound viable. I know the connection on the MLPS was changed at some point and could be involved.
Verify the HVAC is in the Off position. If the selector is in the A/C or Defrost position you will get Code 67.
Verify the MLPS is aligned properly:
You can also use a meter to verify the MLPS resistance in Park and Neutral.
Why the OD lamp is lit is another mystery since the TCIL switch is a momentary contact to tell the computer the switch has cycled state. On 1992 and up trucks the wires for that switch/lamp run through the column and are known to get chaffed which causes your lamp issue. Yours is dash mounted, but would be worth the time to verify there is no short to ground for that circuit.
MLPS Pin-out and Testing (this is for a 1993, but the pin-outs are the same on your truck. Wire colors may vary)