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I have a 95 f250 with the e4od. Sometimes when I shift into reverse the it kills the engine. The speedo bounces as well. Does this point to a bad VSS? Or a trans going bad?
I'd probably lean more towards a problem with the MLPS at this point (manual lever position sensor). The VSS is more likely to give a problem with upshifting in my experience.
Just because the light isn't on doesn't mean there aren't stored codes. Fordfuelinjection.com has the procedures for using a small jumper wire to get your check engine light to flash out the codes. It's real good to know how to to do that anyway for these trucks. You could also try removing and cleaning both the MLPS and the VSS to see if that solves the problem. My VSS was giving me problems and all I had to do was wiggle it--might have had some snarf stuck to it on the inside.
I don`t want to depress you but what I have read on the transmission page your problem can be caused by low trans fluid level, loose trans filter, internal fluid leaks, worn pump, all causing low line pressure. In addition problem can be bad torque converter, bad TC solenoid or bad solenoid wiring.
Most of this advice from Mark Kovalsky. You should probably have the transmission line pressure checked. Good luck.
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