It has to do with the Digital Transmission Range Sensor. You have either an AR100 or an R470W transmission. Although the code is for the same thing on both transmissions, the circuitry is different, so the way you would go about troubleshooting the problem is different depending on which transmission you have.
It could be simply out of adjustment, there could be a wiring problem, or the sensor itself could be defective. I wouldn't place any bets on any of these possibilities. I have seen sensor failures, but I also know that Ford has had more than their fair share of connector/wiring harness problems on some models. I recommend following the diagnostic troubleshooting routine only after doing a thorough search for Technical Service Bulletins for your vehicle.
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