Trans shifting hard from 1st to 2nd and 2nd to 3rd. Finally got a code (not sure if same issue) code states Failed output speed sensor. Also states poor electrical connection. Where is this sensor located and what is the cost of repair. Could this be why it has been shifting hard?

SOURCE: 96 Ford Contour CD4E Auto Trans.

The item referred to needing adjustment in the previous reply is called the MLP (manual lever position sensor). It tells the computer electronically that the car is in P, R, N, D, 2,1 (depending on the gear selector) It also allows the car to only be started in P and N for safety.
If it is out of adjustment, the sensor is misaligned with it's reference point on the gear selector rod, which goes into the trans case and pushes/pulls a rod that moves the selector piston/valve. The valve will be in the right place but the computer will say other wise and it controls the shifting with the solenoids.
SOURCE INFO:
{MLP transaxle function: determion desired gear and electronic pressure control (EPC) pressure:
Symptoms: Harsh engagements and firm shift feel, engine may not crank, may downshift to a lower gear, 2nd or 3rd gear operation, transaxle not inicating the proper gear, no 4th gear operation. no manual first gear.}
Another point of interest is the EPC (electronic pressure control)solenoid inside the black side cover.
Failed OFF-maximum EPC pressure, harsh engagements and harsh shifts.

Another possible issue may just worn out clutches if the unit has high mileage or maybe verify fluid level and recent change of fluid. The filter is inside unit and trans has to be removed to change, some Hondas are like this too.

SOURCE: Road speed sensor

So the diagnostic code says the speed sensor is bad in the transmission? Make sure all the wires are tight to the transmission and in good shape. If they are you probably need to replace the sensor. If the transmission controller doesn't get the correct speed values it would cause some problems shifting. Wiring to a transmission can cause faults since the wires are subjected to heat and vibration. If you can't find any problems with the wiring or the wiring connectors it just might be the sensor is bad (stuff fails).
I do have to say that I am not sure what G-68 means. The diagnostic codes are usually five digit numbers with maybe a letter.

SOURCE: 2000 VW Jetta squealing when shifting from 2-3rd and hard shift down when going up hill

hi if its just second to thrid then the clutch is slipping on thrid gear look at the boxes oil level is important but look at the colour is it red and tranperant as this is ok if its brown its a sign of the clutches slipping i would try a stall test on thrid gear first and if its ok second gear [manually] see is the engine stalls at the correct rpm if you thinkabout it imagine you are in thrid gear in a manuual box and suddenly drop into second it would be hard shifting it could also be a faulty thrid gear solenoid yates210456

Steve Allison

• 5569 Answers
• Posted on Dec 22, 2008

SOURCE: Transmission won't shift fron 1st, 2nd or 3rd correctly!

I'm no expert but it sounds as if you might have some moisture (water) contaminating your tranny fluid. I'd first try having it drained, flushed and refilled with fresh fluid. Preferably after it has been warmed to room temperature - -2 brrr. 

SOURCE: automatic transmission not shifting into 3rd or 4th

call a dealer and they will tell you you are suppose to change your transmission fluid every 2 years or 30,000miles but if you was carrying this much load you may have over heated the transmission so I would shop around and get a good deal at a transmission place where they can replace the filter and the fluid and adjust the bands on the transmission if needed