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Check to see if wire has fallen off the PTO gear box. Let me know if this didn't help and I will give you some other suggestions. You may have a bad pull in coil.
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That light means that the shift points have changed on the transmission. This is to get better economy when hauling. If it wont stop flashing then there is a valve in the transmission that is bad or sticking. You will have to have it removed and overhauled..
Pull the main bulkhead connector on the side of the transmission and check for fluid inside the plug if so that shorting out the transmission electronics this is a common problem with ford transmissions if not check all fuses download the manual from ford owners.Com and your fuse box diagrams and fuse values are in roadside emergencies
check your trans fluide oil for a burnt smell
if so replace ---mercon sp only in power shift trans
anything else will cause damaged
tow haul light fashing = trasmission code
need to scan probably faulty sensor chaff wire
dirty conection /partialy unplug junction
burnt fuse
Taking a guess at it, I would have to say that the transmission fluid is thermally broke down from the heat, and stress from towing. Try to change transmission fluid and filter. If this does not fix it the transmission itself may be damaged from the excessive strain, and heat. (heat is number one cause for transmission failure. After this problem is fixed, next time NEVER tow in Overdrive. This over works the transmission, and creates the excessive heat. If you tow a lot than consider adding an after market transmission cooler. Which is only approximately 100 and up, but will save thousands in the long run:)
Manual says: It is recommended that your vehicle be towed with a wheel lift or flatbed equipment. Do not tow with a slingbelt. Ford Motor Company has not approved a slingbelt towing procedure.
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