Got the same here on my '99 Expedition...
Yes it indicates a problem, with the light on the ABS is not functioning so
if you brake hard or brake on slick surfaces, your wheels will lock up. As
far as fixing, it's most likely one of the four speed sensors on one of the
wheels; Ford service diag computer can tell you which sensor the computer is
indicating is failing otherwise it's a hit miss replacement plan until you
find the right one.
The standard ODB-III code scanner even with Ford parameters will not read
the code for the ABS as only the Ford diag system will read the "body
codes", I did see that you can get the sensors fairly cheap at
http://www.genuine-ford-parts.com/ I have yet to dig into mine but I am
planning on doing something before fall comes around.
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