Blinking OD light and fuse keeps blowing

[amcfontana]

I have a '95 XLT that we bought used around 108,000 miles, last summer. At that time, every few months one of the 15 amp fuses would blow (#26) and my backup lights, rear window defroster, and (after turning the switch to put it in 4X4) the 4X4 lights would just blink. As soon as the fuse was replaced, they all worked fine for another few months. Then a couple of months ago, it started happening more and more. Finally one day, the OD light started blinking and wouldn't stop. We looked in the manual and it said this could cause transmission problems. We took it in to Ford immediately, they put it on the computer and said they needed to rebuilt the transmission. They did that, we brought it home and the fuse keeps blowing. Sometimes it will go a week and not blow, and other times, it will blow everytime we put it in gear. Also, I tried starting it, then shifting it slowly until I reached drive. When it hits drive, that is when the fuse blows. The guy at Ford cannot figure out why it is doing this. He has been working on it off and on now for 2 months. It's driving us crazy!!! Then the other day, my husband said that the transmission was making a noise and he smelled something burning when it shifted from overdrive down to third gear. But of course, it didn't do this for the Ford guy! And I just drove it 65 miles an hour and it wasn't doing it now either. Any ideas?????????

 

[TPLYNCH]

Sounds like a short in one of the wires in the tranny. Mechanic may have to take it apart again to make sure none of the wires are pinched/worn and shorting if a check of the exterior wire show no damage.