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Problem: sometimes kicks out of O/D when decelerating to make a turn or when pulling a trailer (with or w/out load)....happens more when hauling. Also, when trailer in tow, kicks out sometimes when shifting around 50-55mph or when decelrating to climb or make a turn or corner. After it kicks out, it really shifts hard when starting up from a stop sign or slow turn. All is fine if I kill the engine and restart. All this started about this time last year after a vehicle pulled out in fron of me. I bore dwon on the brakes so hard to miss them the trailer started hopping. Also, I need pictures and tech guidance on replacing o-rings, hoses, etc. for a leaking fuel filter bowl or drain valve. I'm on a very tight budget and not much of a mechanic. Hope this isn't a sign the E4OD is fixin' to go out totally. I replaced the torgue converter in about '98 but symptoms were more severe...shifting was harder and happened at slower speeds. Brad
My rig was (and is again) doing this. I had other major problems, so a new flexplate, TC and tranny came my way.
Your issues are what I was experiencing. They've started up again, too. I've been told to check the Vehicle Speed Sensor (on the rear differential) wiring for rubs and cracks. You can also pull the VSS, wipe it off and reinstall. That might help.
Unfortunately, the wiring you need to check from the VSS goes all the way up front. I'm planning on checking mine this weekend, but Saturday is supposed to be the "warm" day (high of 44) and possibly snow on Sunday.
Anyway, the flashing OD light means a trouble code should've been set. Have the codes pulled (tranny shops and some auto parts stores will do it for free) and let us know what codes, if any, you're getting.
The places that read codes free can't read Ford trans codes. It takes an expensive tool to read those codes and the free places don't have it. You will need to pay someone that has a Ford specific scan tool to be able to read the codes. Once you have the code we can help you diagnose what's wrong. Without the code all anyone can do is guess.