I own a 96' Ford Taurus Station Wagon. About two weeks ago on the highway the speedometer would drop to 0 and then go back up to the correct speed repeatedly. The OverDrive light was blinking as well. I found out that the power steering fluid was empty and put some in. Everything was fine for the first two days. Now, however the speedometer will drop to 0 just once and go back up to the correct speed and the power steering will stop working. What could be wrong?

Faulty Transmission Range Sensor
Random Engine Code
Steering Column Problems
Power Control Modulator or another other electrical related malfunction.

Is there any way I can find out which of these it is? The dealership wants a boat load of money to even look at it. Thanks!

A lot of parts stores like O'Reilly Auto Parts, Napa, 4parts and Carquest loan out equipment.
You'll need a multimeter and error code reader to check everything but the steering column and rack & pinion.
The steering column and rack & pinion could be checked by a by a struts and alignment shop for about $60...But you would have to get it there.

I would also get a chilton to learn how to check the various electrical componets.

Thanks. I will try that. Is that loaned equipment quite simple?

the speedometer thing makes me think its the Vehicle Speed Sensor

But would that effect the power steering pump?

The TRS tells the computer what gear it is in.

If the TRS goes out it would be just as if the car was in park or neutral.

Thanks! So what I am looking to loan is called a TRS?

Thanks! So what I am looking to loan is called a TRS? ..........nononono.......A TRS(Transmission Range Sensor) is a part of the vehicle.
They can loan the tools to check it but they won't loan the part......You have to buy the part if it is broken.

Makes sense, thanks for all your help!