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My 1996 Mazda 626 LX with 2.0 DOHC did that with the OD light flashing and no reverse and the motor had sudden loss of power, I inspected and found the Mass Sensor connector wires bare and touching each other. I replaced the connector and it fixed the problem. I hope it helps. I got the connector from Oreilly Auto Store and looked up Mighty Help 4 wire connector for Ford Mass Sensor and had to special order it. They run about 10-15 dollars. You can get one from the Ford Dealer but dont tell them its for the Mazda or they will not help you. Its the same connector they use for the 1996 Ford Taurus Coil Pack.

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Q: Where do you start to trouble shoot a transaxle that will not engage reverse on a 96 626 Mazda SE CD4EModel powertrain?
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