Im almost positive that this wasnt "active" until 99 but i had another guy swear to me that some stangs had TCS. I still dont think they did...i have NEVER seen or heard of one.
Maybe it was one of those options that was added "before its time".
Well IF the car had the electronics to use it...it would work just like it does on the new mustangs which i dont know in full. But when it senses "slip" it cuts fuel or timing to give a "bog" type of feeling i guess.
My 94 doesn't have any sort of traction control like you describe. I don't think the 95 did either. So as far as the harness I am building for my 68 using the 95 computer and t5 transmission is concerned I can eliminate that wire from the ECM plug. I am only looking to retain the basic engine functions.