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I had that problem. It turned out to be the pin that rides inside the VSS#2 on the front diff. It was a simple fix for me, but sometimes the nylon gear inside the diff wears down and the VSS stops spinning losing the speedo and throwing a code for VSS#2.
If it is the nylon gear, if you do not fix it soon, the worn off gear parts will damage your front diff.
Remove the VSS#2 and see if the pin is broken. If it is not broken, jack up the car, put it in neutural, manually turn the wheels and look down where the VSS#2 was and you should be able to see it turn. If it turns, your VSS is shot, if it doesn't then your diff gear is shot.
Doug
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1992 LS Touring (6/91) - Currently undergoing a five speed swap
Black over Claret with spoiler; 235,000 miles; Mods: 2002 Legacy 5 speed, ACT Pressure Plate, Excedy Clutch, Short Throw Shifter, Aussie Powerchip
1992 LS Touring (6/91)
Black over Claret with 2.5" setback spoiler; 202,000 miles; Mods: B&M Cooler
1994 LSi (4/93)
Bordeaux Pearl; 198,000 miles; Mods: Weight reduction.
1969 Mustang GT Convertible
1970 Mustang Convertible
2000 Ford ExcursionSola lingua bona est lingua mortua.
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