Let's see if I can document this correctly.

I have a 94 f-250 IDI with the auto e40d. Just got it.
It has some shifting issues/torque converter lock in and out issues. Runs GREAT!

I don't think the trans is out based on the fact it shifts into every gear rather smoothly at about the right rpm.

Issues I See.
When going down hills/ deccelerating torque converter locks in and out or downshifts. Overdrive light blinks. Speedo does not work. Tach sits at 0 until the pedal is pressed. Then tach works normal as long as the accelerator is pressed. I believe the truck takes off in 2nd. (I could be wrong) Trans Seems to shift smooth. (2100rpm on average). The P R N OD 1 selector for the trans is off by quite a bit as well. Sits at 1 when the truck is really in OD. ABS light is on.

Plan to fix.
I am purchasing the speedo sensor this evening ($20 at autozone), and cleaning the tach sensor. I will also be checking the Throttle Positing Sensor on the side of the Injection Pump. I believe the correct Voltages are 1.1v at Idle and 4.3v at Wide open throttle. Might buy a new one ($45 at autozone).

Not sure how difficult it is to readjust the trans shift selector or if it will help the problem but I do believe there is a sensor the lever that goes to the trans.

I plan to run the codes when I get it road ready. I has some VERY bald tires on it at the moment.


Let me know if you all see anything I missed or need to address as a possibility to solve this issue.

 

I have the same 1994F 250 K vin IDI Turbo Diesel 7.3
Check that all fuses are working in fuse box , i took mine to mechanic for shifting up and down the gears all of a sudden and speedo odo not working with a new trans....turns out it was just a fuse !

 

I also have a 94 with a 7.3 IDI with an e4od that has shift problems. I have the same lock up issue and also the OD light flashing but mine will also hard shift at times and feels like your trying to take off with the brakes set. I took it to a ford dealer and was told that the lock up solenoid. I was told they are fairly easy to replace but you can not get them individually they come as a solenoid pack and are a little expensive. Hope this helps and good luck.

---AutoMerged DoublePost---

I was also going to ask you were talking about adjusting the shift lever, is the lever loose or is the indicator just out of adjustment? The automatics were famous for the linkage where it bolts up on the steering column under the dash coming loose. All I had to do was just tighten the 3 torques screws and it corrected the problem.

 

Got the light to go off! Replaced the sensor in the rear end with a new one. Speedo works. Tricked me up at first. The plug-in housing was a little too long and had to be trimmed back. It didn't fully snap in.

Trans fluid is very black. Any advice on as to have it flushed or just drain some out and put some fresh stuff in? I also plan or running a bottle or two of lucas trans fix in it.

duke: The shift indicator plastic cable mount under the dash is broke. That's why the the indicator is way off. I will keep the shift solenoid in mind if I run into any more issues.

There were a couple fuses blown. neither were #8 or #18 though.

 

does the fluid smell burnt? When you have a higher millage trans with the fluid black and burnt you have to be careful. If you flush the trans or change the filter and fluid you can cause problems. Once you put new fluid in it is liable to start slipping cause some of the black in the old fluid is clutch material which believe it or not helps the worn clutches grab when engaged. Its kinda hit or miss I do believe in the Lucas trans stabilizer its a great product. I have an 85 k5 blazer that the trans was so worn out it would barely move. I drained the pan changed the filter and put 4qts of lucas in it and the rest trans fluid and it shifts great now and has lasted me over a year.