yo,
VSS used to be in transfer case adapter until around 92 when it was move to rear diff.
Do you have 4 Wheel Drive?
Vehicle Speed Sensor (VSS) 9E731:
also ref to as RABS Sensor (mostly in 2 wheel drive)
Description: The vehicle speed sensor is a variable reluctance sensor that sends an AC/frequency signal to the powertrain control module. The vehicle speed sensor signal is used by the powertrain control module to calculate vehicle speed in mph. Used as an input in determining shift scheduling and electronic pressure control.
Symptoms: Harsh engagements, firm shift feel, abnormal shift schedule; unexpected downshifts may occur at closed throttle, abnormal torque converter clutch operation or torque converter clutch engages only at wide-open throttle. May flash transmission control indicator lamp.
Diagnostic Trouble Codes: 452, P0500, P1500, P1501, P0503.
see;
Section 06-09A: Brake System, Anti-Lock, Rear for 2 wheel drive;
1996 F-150, F-250, F-350 Workshop Manual
REMOVAL AND INSTALLATION
RABS Sensor
http://www.diesel-dave.com/vehic/manual/stj/stj69a23.htm
Removal
1.Pull the wiring harness connector off.
2.Remove the RABS sensor hold-down bolt and remove the RABS sensor from the rear axle housing (4010).
Installation
1.Clean the axle mounting surface. Use care to prevent dirt from entering the rear axle housing.
2.Inspect and clean the magnetized RABS sensor pole piece to make sure that it is free from loose metal particles which could cause erratic system operation. Inspect the RABS sensor O-ring for damage and replace if necessary.
3.NOTE: Do not apply force to the plastic RABS sensor connector. The RABS sensor ****** should slide to the mounting surface. The air gap setting is between 0.127-1.14mm (0.005-0.045 inch).
Lightly lubricate the RABS sensor O-ring with motor oil, align the RABS sensor bolt hole, and install.
4.Install the RABS sensor hold-down bolt and tighten to 34-41 Nm (25-30 lb-ft).
5.Inspect the blue RABS sensor connector seal and replace if missing or damaged. Push the connector on the RABS sensor.
OR for Section 06-09B: Brake, Anti-Lock, 4-Wheel; same