Weird Transmission activity. E40D PLEASE HELP!!!
Your statement that "in reverse you would dang near have to have it at the limiter before it would start to move back wards." tells me that you probably wiped out a clutch or two. Since you now say it doesn't want to go into third gear, you've probably destroyed the direct clutch with that one reverse engagement.
First, although checking codes is good procedure, there are no codes to pull if your car is like mine. I have the OBDI and I've checked the codes, there has never been anything related to the transmission no matter how much it clunks and how wild the speedo gets. Who knows why? I've heard some of these have the OBDII and maybe that makes a difference.
On my 96 with 230k on the E40D, I also have a wild speedo and rough shifting. I found that replacing the VSS in the rear diff (with a quality NAPA part) improved both, but did not fix either. (I also remember in my research that sometimes the VSS is in the transmission itself, or maybe there are even two in some cases. Mine was in the rear diff and - I think - only in the rear diff.) Be careful with the wires in the harness, they are fragile. Maybe buy a new plug/connector for the VSS when you buy the new VSS.
Then I removed the RABS module (behind the glove box. Just unplug it) and that improved both the clunking and the speedo needle a lot - but the speedo was still wild above about 50. This post (from Mark who replied above) just the other day really shed light on that:
https://www.ford-trucks.com/forums/1...l#post21704882
Then I cleaned all of my grounds (after @rla2005 pointed me to this thread: https://www.ford-trucks.com/forums/1...nd-points.html) and reinstalled the RABS module. One test drive suggests the shifting is smooth but the speedo is still wild above 50.
I've found this thread helpful in understanding the wild speedo above 50 problem (which I assume is unrelated to the wild speedo *below* 50 problem, which I am tentatively believing was caused by bad grounds): https://www.ford-trucks.com/forums/1...led-codes.html.
You'll see how Mark's post (that I linked to) says Ford suggests getting a new PSOM to fix the wild speedo over 50 and clunking. But that post I just linked to includes one fella who replaced the capacitors on his PSOM, which I am guessing will have the effect of muffling errant signals as described in the Ford note as the problem solved by installing a new PSOM. So I intend to try that at some point.
Oh, I also greased the driveshaft with a special Ford lubricant (Motorcraft PTFE (XG-8)) and it made a huge difference - that was before the VSS etc. Removing that ds was a pain because of the type of fasteners used and it's a known problem and better replacement fasteners are available. (I may have changed a u-joint or three in the process.)
I have a 3rd brake light and I did not know that this was connected to the speedo circuit, thank you! I didn't think I had a running light mode, but then again maybe that lamp is bad, I'll have to check. But I wonder if yours has been tampered with? For example, if you had a topper or camper where the brake light wiring was messed with to make the topper brake light work? (I think that is supposed to be done from the 7-pin trailer plug, not the light itself, but that doesn't mean it was done that way.)
Anyway, good luck and although I'd bet money he's right, I hope Mark is wrong in this case and your transmission is fine.
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Anyway, good luck. Sounds like your problems go much deeper than the speedo and I hope you receive a Christmas miracle.
Last edited by wannabuyaford; Nov 26, 2025 at 09:04 PM.
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