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95 F350 diesel po500 code. Speedo works (once in a while it may show a slight flutter but rarely) but scan tool datastream indicates o mph most of the time. Once in a while it will register what the speedometer reads. Transmission shifts very hard. Can the VSS be bad but the speedometer work correctly? If it isn't the VSS then what is it?

Vehicle: 95 F350 diesel

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Yes it can , What gets confusing about this code if the transmission is shifting hard and you get a P0500 this can also be the output speed sensor.The output speed sensor determines shift schedule, and torque convertor engagement, and the transmission EPC pressure. P0500 can also represent the output speed sensor for the transmission and not necessarily the VSS.

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