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If I recall, there are three "speed sensors" on our trucks that will set a code. The VSS is the most common failure, and it's the one that the speedometer is based upon.
The other two are shaft speed sensors that monitor things internal to the transmission. They're located on the top of the 4R100. The code you're seeing is likely indicating a failure of the rear one of those. Hopefully, the connector to it is only full of mud or water.
As I said, it's only a guess, and I did no in-depth research to arrive at this.
Pop
The PCM uses the front sensor on tranny to tell the speed of the input shaft and the rear tranny sensor to tell the speed of the output shaft. I'm guessing it is so the PCM can determine when the TC should be locked and un-locked, as well as a bunch of other stuff I can't even guess at. Maybe Mark K. will elaborate. I do know that AE can tell what percentage of lock-up the TC is in and of course it gets that info from the PCM. That percentage would be determined by the ratio between the speed of the input shaft versus the speed of the output shaft. Thinking out loud now. Hope I'm making sense.
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