My art carr tranny did this, I had the same symptoms as you and everything. I rented a rather large diagnostics tool from a ford dealer, which showed me that the computer thought the car was in O/D while the transmission went on its own business downshifting and upshifting, staying in O/D most of the time... tires screeched one day on the freeway on a 4-3 downshift. Called up art carr, they were clueless, and they sent me another valve body. Problem fixed.