Limp can be caused by either, so my first step would be to verify tire diameter uniformity. . PSI would be the first step.
I would also do a freeze frame on a DSO scope of the sensors, but I assume you do not have that, so start with the simple possibles ..

Rolling tire diamter can be done by marking each tire with a chalk and ground reference line and pushing the car foward and measureing the ground traveled. They should all match within reason...if they do , then sensor scopeing would be next step..the codes are telling you the module has detected a speed sensor circuit problem..it is NOT neccessarily telling you there is a bad sensor.

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A Dalton

I check tire pressure, turned on and abs and ets light did not go off. I cleared codes in OBD II let it warm up and went for a drive. The tranny never came out of limp, the abs ets light stayed on, the check engine circuit came back on. I cleared OBD II again same thing happened. I disconnected battery no change, I disconnected and touched negative and positive cables together for two minutes, no change.

I am going to check resistance and voltage on the front sensors and would like to check voltage and fuse on the OVR. Can some help locate it on the 1997 e320 straight six? thanks!

Ok I checked all four resistance on wheel speed sensors, these are the results:

All four wheels resistance were: 1.65 ohms, when I rolled the wheel the resistance increased some.

I checked voltage to all wheels it was: 4.6 volts

Are these good numbers? Also how do check the voltage reading back when the wires are connected?

I checked the brake light switch. The connection with two wires was normally closed when brake pedal was pushed it opened there was no resistance.
The connection with three wires was normally open and closed when the pedal was pushed.

Does this sound like the brake light switch is working properly?

I check all fuses in the engine compartment on the right and left side. All good

I check fuses on the side of dashboard. All good

I check fuses under rear seat. All good

Can someone tell me where the OVR is found so that I can check this?

The ABS and ETS lights remain on and the Check Engine Circuit light is on. The code for this is PO720 Output Speed sensor. Please Help

Bump.. Were you ever able to get this issue resolved??

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Dennis
2006 E320 CDI Black/Black Leather. Nav, HTD Seats HK stereo 32000 miles.
2000 VW Passat 1.8t 300,000 miles as of Dec 09, 2009 original owner
1997 E300d Silver 300,000 miles As of Jan 05, 2010
3rd owner SOLD