looking for any ideas on what might be the problem here.

The trucks is a 2004 4wd f150 with auto. 66,000 miles on the truck.

you must turn off the over drive and keep it off in order to drive it anywhere, if it is on you will only be able to go about 20mph and then it will shortly slip into N.

Please help....

 

Same exact problem I just had today. I also have a 04 reg. cab 4WD Auto. 38000 mi. I think I may have lost my driving gear on the way home today. Seemed like it happened right when I went to pass another car on the road. I have to keep OD off or it will slip into neutral.

I hate to think how much it is going to cost to fix. Although, it may be partly my blame as I was running level 2 on my Edge programmer. It seems like it shifted really hard after the programmer...HARD not firm, like it was supposed to.

 

UPDATE: I just took the truck the local ford dealer this morning, I work across the street from them. On the way over there, I noticed something else weird. The drivers blinker is now blinking twice as fast as normal. The passenger side is OK, but my boss who gave me a ride back said that my taillight was out on one side too. I don't know if this would have anything to do with the tranny problem at all, but I told them about it.

They said they were pretty busy today, so I don't know if they will get to look at my truck or not.

 

Well keep me posted, because we are have electrical problems also so maybe that could be part of it, like the window switches sometimes dont work, and some times the electric 4wd wont work. weird

I'm super curious to hear what the ford dealership had to say.

 

Did you check relays, fuses and for shorts?

 

If I'm not mistaken (and I might be) the blinker speed changes as your lights die.

 

UPDATE: Well I talked with the dealership today, and they said after dropping the pan they found a lot of material in there, gasket and metal shavings. Being as it only has 39,000 mi. he was going to take out the trans. and find out exactly what is wrong with it and try to talk with Ford about giving me a exception on warranty. Hopefully they go for this, I really don't feel like shelling out a couple of grand this close to x-mas.

As for the blinkers, I could understand if that is the way to tell if you have a light out. It's sounding more and more like a mechanical problem with the transmission.