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OK, that would be the 722.6 transmission, and I believe what you have there for the reverse light switch is a part in the shifter itself called the "Range Recognition Switch". There is no adjustment to it that I am aware of, probably wearing out. It would need to be replaced, but at least you can buy it as a replacement part, unlike the 2000 and newer shifter, where you buy the whole thing.
It's not that bad of a job to remove the shifter, the part itself is a bit tricky to replace though, kind of a puzzle to disassemble and reassemble.
Gilly
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