The traction control gets its information from the ABS system, so a faulty sensor reading will automatically shut down the traction control system.
It is common in this vehicle for the sensor to malfunction!
Brake system warning
Momentarily illuminates when the
ignition is turned to the START
position. Also illuminates if the
parking brake is engaged. If the
brake warning lamp does not
illuminate at these times, seek service immediately. Illumination after
releasing the parking brake indicates low brake fluid level and the brake
system should be inspected immediately.
Anti-lock brake system (ABS)
Momentarily illuminates when the
ignition is turned to the ON
position. If the light remains on,
continues to flash or fails to
illuminate, have the system serviced
immediately. With the ABS light on, the anti-lock brake system is
disabled and normal braking is still effective unless the brake warning
light also remains illuminated with the parking brake released.
Here is a link to your free owners manual with an explanation of all the lights and features of your car as well...
http://safemanuals.com/user-guide-instructions-owner-manual/LINCOLN/TOWN%20CAR%202000-_E
Click on the PDF user guide on the right side.