Rear wheel speed sensor on the top of the rear axle. $30 -$50 at your
local dealership, about 10 minutes to replace it. Hardest part is
getting the old one out. Don't try to bend it out, just twist it. New
one goes in easily, make sure it's seated all the way. Put the clamp
back on, plug in the wire harness. You won't need to disconnect the
battery since this is a "soft" fail and the codes will reset when you
start the truck if you've done it right.
I had some of the same problems and it was the output speed sensor on
the side of the tranny of my 2000 2500 4wd. $35.00 @ the dealership .
unscrew the old and in with the new. By the way this will throw a
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