A 2005 Ford Escape XLT with a blinking AWD light
 

Hello,

I own a '05 Escape XLT that has a blinking AWD light problem.

It flashes for a while if the wheels slip (rain, snow, etc). It will either stop after a while or reset if the vehicle is turned off for some time.

I looked in the manual and it says the code meand the AWD system is disconnected and needs to be fixed.

I took it to my mechanic (local, non-dealer, non-Ford, but really honest and competent) and they put it up on a hoist and poked and prodded but couldn't find anything wrong with any of the mechanical aspects of the AWD system (so I assume it isn't about the Tone Rings which I figure they looked at). They ultimately said that it is likely a faulty sensor or loose wire that is part of the system and is located under the centre console. They said they could take that apart but it would be a fishing expedition and that I should just take it to a Ford dealer for them to diagnose and fix.

I suppose they missed something or it really is a simple electrical issue. Either way, I'm concerned the dealer will charge a premium and I'll still be no farther ahead. Any ideas?

The best way to start is to yank the codes from the 4X4 module (yes, there is one). These had a lot of problems with the solenoid on the top of them (which there were TSB's about), which locked up the rear end in the event of slippage. I'd bet there's a connection.