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On the '96 it is a VSS. It sends the wheel speed signal to the PSOM and ABS module. Through the PSOM it runs the speedometer. It is mounted in the 2:00 position as you look at the pinion. Some are protected be a sheet metal plate.
Next question is how much for a replacement and is it a pain to replace, my truck for the last couple years seemed to wheel hop (rear tires) when I applied the brakes at high speeds but this morning the abs light came on and the wheel hopping ceased for a while but now the light went out and the hopping is back so I figured that it has not been functioning properly. I guess this is a dealer only item.
Did you notice any flucuation on the speedometer reading associated with the wheel hop? The VSS is not a dealer item. I got one at Action Auto. I know a few folks who ordered from Rock Auto...one of the forum advertisers.
Then you've got the right repair order. The VSS provides the axle speed to both Speedo and ABS module. Since both are acting up, it is the common component.