Case anyone interested, I had similar problem with my 2001 XG300, Problem fixed after replacing the input and output speed sensor. Did the output first which everything pointed to it as the cause, no change. Then the input sensor, problem fixed. Hope this helps someone else.
QUOTE (Mihkel @ Mar 13 2009, 08:27 AM)

Thats why You should let electrician or tranny specialist check it some more.
PS! Some codes come after sertain period (like 5 seconds) of giving out not-maching (uncorrect) values. It means, sensor could give a few wrong valus in a moment every now and then, but it will be enough to mess up TCM calcuations for choosing the right gear.