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hmm maybe take a look at the main trans connector on the pass. side of the trans. You've probably already read that they can be pain from time to time. I suggest cleaning out the connector and the conntacts the best you can and then apply di-electric grease to the plug to block out any moisture. You could also try disconnecting the negative battery terminal for 10 minutes which will clear out the TCU. I don't think its in limp mode or anything but who knows maybe clearing the TCU will help. Otherwise,
your trans would behave really bad if the VSS on the transfer case where the speedo connects into was faulty and you say the TC's just not locking so it can't really be that. When you are cruising at 60 or so and press the brake how much did the rpms come up when the TC was working? I'm almost out of ideas cause everything is functioning but the TC isn't but was when things were wrong...
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'90 7.3 IDI F350 4x4 Custom, ext cab, E4OD w/ tow package, 4.10 Dana LSD rear, 94' ATS turbo kit w/ 99' PSD wastegated charger set at ~20psi max, copper firering head, studs, turbo IDI block, mild head work, Delta Cam, Moose pump, turbo injectors, 6.0 PSD intercooler, propane injection, 3in exhaust. Almost 300 and 500. (added 2 more flats than previously) 296hp, 487tq (6/4/11)
'03 7.3ltr Powerstroke F350 4x4 4dr. SCT Livewire, ATS exhaust, rebuilt HD trans, 6.0 trans cooler, fuel mods, AFE intake, Garrett gtp38r ball bearing turbo; glad its not a troublesome 6.0 
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