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I had the same problem. I took off the rear diff. cover and checked the tone gear in there. One or two teeth were messed up and I noticed that part of the gear wasn't seated all the way againt the ring gear. It was real simple to check out. I had my mechanic replace the gear. I bought it from the ford dealer for $26. The mechanic charged me $100. Works fine now. I've got my cruise control back.
The tone ring is purposely missing some teeth. That indicates starting position to the VSS. (it lets the computer know when 1 full revolution of the carrier has happened.)
Um...I've seen two tone rings in my life and neither of them were missing teeth..so I think that might be incorrect.
Check the condition of the rear end itself, not just the tone ring. There could be a bad bearing or side/spyder gear causing the whole assembly to move at those speeds. When the assembly moves, it moves the tone ring which might be what is screwing up the reading, I've seen that happen.
The tone ring wasn't missing any teeth. There were a couple damaged. And like I said I think the main problem was part of the tone ring wasn't flush up against the ring gear. Once I tapped it back in place the speedo didn't jump as much. So that showed me that, that was the problem. I had it replaced and it's been fine ever since. I'm just glad I didn't have to replace the psom.