Well, I made it exactly 30 minutes from the dealership and guess what? same problem exactly, no changes. Went back in to the dealer and told them to give me another truck to drive until mine is fixed. Keep you all posted on whats up. The good news is that they are loaning me (at no charge) an F-350 6.0 diesel, 2004 model. Power to spare! 5 speed automatic is amazing. Really like the sound of the 7.3 though-

 

Well it sounds like the same problem I had. Your clutch between 2nd and third is gone. The transmission will have to be fixed or replaced. Mine was under warranty when it did it so they replaced mine. This problem would not throw a code on mine either. Just got lucky and had a good mechanic. Hope this helps.

 

Here's the deal to those of you that are curious. After 3 weeks in the shop the dealership decided to trace every single wire in the truck. Here is what they found- A yellow aftermarket wire bound up underneath the dash. Aparently the previous owner had a creative way to wire in his third brakelight on the canopy and when trading in the truck, just snipped it off and stuffed it under the dash. The bare metal was actually arcing under the dash, and causing a short to the computer. The guy had it hardwired in- No fusible link or anything. Dealer patched up the wires and after a long drive this evening- 3 hours- I could not get a single problem out of the truck. I would not have ever thought that would be the problem, but they called me to the shop to look at it with them. I am told that since it would short out the computer, the transmission would reset itself as well, and then go to cripple mode to determine what was wrong. There was also discussion of these trannies having a learning capability that was reset every time it arced. That is what would set of the light on the O/D switch. Glad to have my truck back- Now for the mods-

 

Glad to hear it was something simple, and not a new trans.

 

Had tranny looked at yesterday by a very reputable shop, they said that the tranny is in awesome shape and there would be no need to have any work done other than a power flush to clean out the torque converter and fluid in the tranny. What a difference. It doesn't shift like it used to at all. All the "slop" is gone. Anyone with similar experience?