Well Ive always wanted a mid nineties f150 and my coworker ended up having a 96 302/e40d single cab short bed for sale, he had owned it since new and honestly he didn't take the best of care with it.

I've owned it for a few months and am slowly sorting out issues as I daily drive it.

The issue that I'm trying to sort out right now is my overdrive "off" light flashing and it's driving me insane!! The transmission shifts fine and overdrive will turn on and off when pushing the button.
I had read somewhere that the sensor in the rear diff could go bad and cause this so I replaced it and am still having the issue.

Anyone know what could be going on?

 

I think the experts will tell you to pull the codes first thing.

 

I did have the codes read after getting the truck, the only things that came up on the scanner from advance auto was an o2 sensor (which I'm planning on fixing when I instal my headers) and the sensor in the rear end, I can't remember exactly what it was called but I believe it was just an abs sensor.

 

I believe that could indicate an internal problem, usually overheating or incorrect pressure. But that could just be a bad sensor as well.
A reputable transmission shop should be able to pull a transmission code and tell you exactly what it means.
Or you could cut a little piece of black electrical tape to the exact size and cover it up ... not recommending it, but I've seen it done before.
And the sensor in the rear diff is a vehicle speed sensor which tells the PSOM how fast the truck is going and the PSOM tells the computer which then tells the trans when to shift gears...so it could very well be related.

 

Thanks for the tips man, I think I'll avoid the electrical tape for now till I find out exactly what's going on lol. I'll look around my area and try to find a trans shop that can scan the computer.

Thank you!