1994 f-250 Stalls when stopped unless in first gear

I'm a real novice, but, having had a couple of E4OD's and studying about them, I'd wonder if you don't have a problem with the MLPS, the Manual Lever Position Switch. It's the piece that replaced what we used to call the backup light switch. The difference is, it tells the computer exactly which gear you've selected. They were pretty common failures, and the replacement piece is a redesign to fix the problem.

Just a guess,

could also be a problem with the torque converter look-up system

Whitelightning

I am with Whitelightning on this one. It sounds like the lockup clutch on the torque converter is not unlocking and therefore trying to hold the transmission in 3rd or 4th gear. You might think its getting back to 2nd gear, but it probably isnt, and if the lock-up i still engaged it puts the trans into direct drive, meaning that the engine is directly coupled to the rear wheels. You need to take this to a tranny shop and have them check it out.

Pk