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I am having a similar issue with my 05 SD, when the truck is cold everything is fine, after 5 or 6 miles and the trans gets up to normal temp the tow/haul light starts blinking, the dash display says to check trans temp and then the trans temp gauge drops to cold. If the truck is in overdrive when this happens everything shifts and drives fine but I noticed if it starts blinking in any other gear it will start to shifting differently and not go into overdrive at all.
I am leaning toward the TFT sensor but when I called the dealer for the part they give me a price of $16.56 which is much different than the part prices I have noticed here. Can anyone shed any light on my confusion maybe a part number to make sure I am getting the correct part or should I buy them all and sell them to the folks here?