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I'd suspect you have other symptoms that you haven't mentioned.
The rear diff sensor isn't used for speed sensing to control shifting on your truck, it's only used for the 4WABS system. Given all the threads about failed rear diff sensors, no one ever mentioned a shifting problem like you have in conjunction with the failure of the sensor.
Have any more symptoms or fault indications?
Steve
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1994 Taurus SHO 3.2/ATX
1989 Taurus SHO What a project! Retired at 249K.
1997 Ford F150 SC 5.4L New Work Truck
1998 Ford Contour Wifey's old daily driver
2007 Mercury Mariner AWD
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