Drivetrain Transmission Slips When I Put It In Drive 95 Mustang Gt

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Define your slip, is it in every gear, or just a certain gear?

Is it slipping, or popping into neutral (no engine braking/no acceleration at all)?

If it's popping into neutral, then catching a gear after the rpms come up/down, look into your Manual Lever Position Sensor (MLPS sensor, also called a neutral safety switch). About $30, easy fix.

http://www.stangnet.com/mustang-forums/threads/94-gt-aode-issues.879144/ - pic/info on it.
 
It slips only when I put it in Drive. After its in drive, no slippage. It happens periodically but it seems that when the car has been running for a while it happens more. Any suggestions? thanks dom
 
Hah, pointed to the exact thing I was going to repost. I had the same problem with my old AODE when the plastic gear on the VSS stripped. Worth checking out both the MLPS and the VSS while you're under the car.