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I had the same problem; did alot of research and found that the ERG valve wasn't the issue. There is a device just before the ERG Valve called a DPFE sensor that was causing the error but the computer couldn't differentiate it.

Check out this link and replace this part. It takes about an hour and its a bit of a pain but it cleared my check engine problem once and for all.

http://www.explorerforum.com/forums/showthread.php?t=164517

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Q: You have a 1997 mercury mountaineer 50 liter and you replaced the egr valve and solenoid what else can be making by check engine stay on?
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