The transmission is damaged, You will need to take the vehicle to a ford dealership to have the transmission replaced, or fixed. 9 times out of 10 it is cheaper and more reliable to just replace the transmission. My 1996 Ford Taurus Had the same problem in 1997 then again in 1998. Taurus transmissions tend to tear up easily if abused. Make sure that your not grinding gears. Make a full stop then change gears when backing, or vise versa. Also, Check the Transmission fluid levels at least once a month. Also make sure that whenever parking the vehicle that you use the parking brake. The automatic transmission should NOT be used as a braking device!
The most common problem with this transmission is the forward control valve
it cost about $10.00 and 3 hours to put in.
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