I have been getting problems with my 01 5.3 lately where the tranny stays in gear too long and seems to sputter. While this happens the speedo stays at zero then jumps around inside my speed range to the speed im going. I've determined that it's most likely a VSS or vehicle speed sensor which controls the trannys shifting techniques as well as the speedo. The only problem is, I cant seem to find it. Can someone tell me where it is, or share a related issue where you found the problem? Thanks!

 

The VSS is either in the rear end (mostly fords) or some where close to or in the tail shaft housing of the tranny.....I would say you are on the right track sounds like a dirty or bad VSS to me

 

Yep, that seems to have been the problem. I actually have two. I only bought one and just outta luck replaced the bad one the first time. They are on the tail end of the transfer case on both sides.