t5 sensor ?

It is the neutral safety switch. It is for the computer to know the trans is in neutral before you dump the engine running codes. See item #6 in the drawing below.

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No switch and you get a code 67.

Code 67 - clutch not depressed (5 speed) or car not in neutral or park (auto) or A/C in On position when codes where dumped. Possible neutral safety switch or wiring problem. This code may prevent you from running the Key On Engine On tests. You can generally ignore this code, since it has no effect on engine performance.

The computer wants to make sure the A/C is off due to the added load on the engine for the engine running tests. It also checks to see that the transmission is in Neutral and the clutch depressed (T5, T56, Tremec 3550 & TKO)). This prevents the car from being driven while the computer is in test mode. Key On Engine Running test mode takes the throttle control away from the driver for several tests. This could prove hazardous if the computer was jumpered into test mode and then driven.

The NSS code 67 can be bypassed for testing. You will need to temporarily ground pin 30 to the chassis.
 
I'm just trying to clarify something. The other end of that switch is on an AOD harness too correct? You mentioned that the car has to be in neutral or park so that leads me to believe that it is on both. I'm doing the swap around tax time next year and I was worried about if I forget to leave the car in neutral when I start it. This switch shouldn't allow the car to start correct? I really don't want to drive through my garage...
 
I'm just trying to clarify something. The other end of that switch is on an AOD harness too correct? You mentioned that the car has to be in neutral or park so that leads me to believe that it is on both. I'm doing the swap around tax time next year and I was worried about if I forget to leave the car in neutral when I start it. This switch shouldn't allow the car to start correct? I really don't want to drive through my garage...

On a 5 speed the switch has nothing to do with the starter circuit. It is strictly for the computer. See my post and the code 67 test path in it.

Starter circuit wiring diagram.
Diagram courtesy of Tmoss &Stang&2birds
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See http://www.autozone.com/images/cds/gif/large/0900823d80195963.gif for 88-90 year cars.
See http://www.autozone.com/images/cds/gif/large/0900823d80195964.gif for 91-93 year cars.
See http://www.autozone.com/servlet/UiB..._us/0900823d/80/1d/db/3c/0900823d801ddb3c.jsp for 94-95 model cars.