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If you have a multi-meter you can check the tach sensor. Take it out again, hold it well away from the truck or anything else metal and put a multi-meter (set to read ohms) across the two wires. From memory it should read 2000ohms. Did you check the wires just where they come out of the sensor for cracked insulation?
I did check continuity. I got no reading. The wires look fine, but i dont like how much they have to twist to install or remove it. I guess I'll look for a new one. are these prone to failure? Anything else I need to know about, that goes out often?
The tach sensor is a Ford part so you could try y2kparts or silverstate from the list of sponsors for good prices.
The problem is that the E4OD needs good input from a few sensors to work properly. It needs a throttle position sensor, the tach, the speed sensor and the range sensor (the thing that tells it what position you have the shift lever in).
If the tach sensor does not fix the problem you may have to check for trouble codes to narrow the problem down however you do need the tach working.
None of the sensors is prone to failure but nothing lasts forever.