So in theory, we could take the VSS straight to the cluster then w/o going to the PCM.
Well, MAYBE, if the combination of parts is correct.
The 95~97 Rangers and Explorers used a Signal Generator on the transmission (2WD) or the transfer case (4WD). This is a gear driven device that fits into a port where a speedometer cable would have gone in earlier years. The SG outputs a 0~12V pulse that is directly readable by the PCM, cruise and speedometer. Adjustment for axle ratio and tire size is done by interchanging gears in the same fashion that one would have calibrated a traditional cable speedometer.
Now for the possible issues with the Signal Generator:
1) As I understand it, you are using a 98 4R70W transmission that did not have a SG installed from the factory. So, you'd have to determine if the SG port is still there and that there is a drive gear for it inside. If not, then you cannot use this method.
2) You have the digital odometer cluster in your 05. Will it accept the same 0~12v signal that was used in earlier years? I suspect that the answer is "yes" but, to my knowledge, no one has confirmed that by actually trying it.
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Any other sensor that you might use for VSS needs a module to increase the signal amplitude and correct the frequency for use by the speedometer, cruise and PCM. Over the years, RBVs have used the GEM, 4WABS Module or PCM for this conversion. The important thing is to use a module that is compatible with the input signal from the transmission, transfer case or rear axle. The most obvious way to do this is to mimic a complete system as used on another Ranger or Explorer. Adjustment to a system like this must be done through the Module Communication Network using a dealer tool.
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If an aftermarket speedometer calibration box is used instead of a factory module, it will likely have a much greater range of adjustment that would allow it to work with any of the existing factory sensors. Another benefit of this method for swappers is ease of adjustment - as a universal device, it is designed to be field adjustable, requiring no special wiring or dealer tool.