Couple of problems. I'll start with the most severe!

1. Just started experiencing reverse gear problems. A couple of days ago, my 94 E320 (125k miles) started hesitating before completely engaging reverse. If I bumped up the rpms, it would suddenly grab and squeel the tires. I took it today and had the trans fluid and filter changed. After I picked it up, I immediately noticed that it was worse than before the fluid change. Now it doesn't want to fully engage no matter what the rpms are. It does go into a very slow reverse when shifted into reverse, but you can push the accelerator and it revs as if in neutral. All forward gears feel fine and the shifting feels as good as it always has. Any ideas?

2. The cruise control has a tendency to not operate occasionally. Sounds electrical. Any thoughts?

3. Rear end suspension question. Ride seems fine. Haven't noticed any handling changes. But, when I hit the bottom of a hill or dip, I can hear a scraping noise coming from the right rear. I've peeked under the chassis (I haven't gotten it on a lift yet - should of thought about that today when they were changing the trans fluid!?!?) but I didn't notice any signs of scraping. The car sits straight and rides fine. Where should I be looking?

I purchased the car about 15 months ago with 79k on it. Besides replacing the brake pads, I haven't had any repairs.

Any help or advice about the transmission will be greatly appreciated.
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94 E320
98 Ford Expedition
67 Ford F100
97 Harley-Davidson Fatboy

You've got the opposite problem from me. I can't get reverse to let off.:):). The easiest place to start is to have the pressures checked. After that, you will need a tech who knows these trannys. There is a clutch pack, a brake and a one way sprague that are used for reverse. I would caution you not to rev it too much or you will ruin the clutch pack. The scraping noise is probably the tips of your exhaust. The cruise problem needs to be described a bit more. Could be the amp or the actuator or the sensor..

Thanks! I'll have to search for a decent independent. I'm 60 miles from the dealer and they are pretty proud of their work anyway.

To give a little more info on the cruise control, it has only happened maybe three times over the last 6 months. It just won't work. If I turn the ignition off and re-start, it works.

Thanks again.

It sounds to me like your transmission has worn out the B3 clutch pack. I've seen this several times and it only causes the loss of reverse. To get to the clutch pack you'll have to remove the trans. and it's front cover. The outer ring of clutch plates is the culprit. You could probably just replace the B3 parts but pay attention to how hard the rubber seals have become. This is usually what causes trans. failures.
Good luck

Thanks for the replys. I've just gotten back from vacation. Latest news on the tranny. Parked the car for 7 days while I was gone. Returned home and had to travel out of town. Drove the car 225 miles without stopping or ever putting it in reverse. Next day, I tried reverse and it worked like new! Drove a couple of miles and it seemed like it was fine - always engaging properly. Today, back to square one! No reverse. I don't know squat about transmissions, but it would seem that if the clutch pack was gone, then it wouldn't start working normally again, and then quit again?? Any thoughts?

Also, the cruise control issue continues as well. It wouldn't work today until I turned the ignition off and restarted. Then it worked fine. Thoughts?

Thanks again for any replys.

GGB

95 E320

Sorry can't help you with your transmission...?
But if you do a search regarding your cruise control, there is a ton of info that should help you narrow down your problem. Good luck with both and keep us posted!

I'll have to agree with you. If the clutch pack was worn out then the problem wouldn't correct itself. What you need to do is drop the pan and inspect it for debris. Usually this is a layer of dark particulate matter in the bottom of the pan. If things look okay change the filter and fluid. Don't forget to drain the torque converter. A complete fluid change will take about 7 quarts. If the problem comes back then it would likely be in the valve body. This is the hydralic brain that controls fluid flow to the various elements.
Good luck

GGB,
Do you have any follow up info on your transmission? Thanks.

no reverse gear
 

Most probable is one of the seals on the reverse clutch pack has cracked. Most likely the shaft one. Plan on removing the tranny and rebuilding the front clutch pack. Clutch disks and seals are cheap.